At Marketing Wiz, our team actively monitors global financial markets to contextualize relevant stories for our clients and their stakeholders. This March, here are three themes that can serve as the foundation for some curated content or even a long-form article for your firm:
Navigating Volatility: Investing Amid Market Turbulence
- The past few weeks have seen substantial volatility as markets navigate the Trump administration’s shifting policies. The Nasdaq neared correction territory, down almost 10% from recent highs.
- While market volatility can be unpleasant, research demonstrates that staying invested is the most robust way to build long-term wealth. A T. Rowe Price analysis of historical data found that investors who liquidate during market sell-offs end up sacrificing almost half of their potential returns.
- Once the market has recovered, it could be valuable to discuss risk tolerance and asset allocation with your advisor. With fixed-income yields at generational highs, investors may be able to achieve their long-term goals with reduced equity exposure.
Key Tax Strategies for High-Net-Worth Investors
- As tax season approaches, it’s a good time to remember the impact that tax optimization can have on long-term wealth building. Tax planning is about much more than just utilizing IRAs and 401(k)s.
- Investment-based strategies like tax loss harvesting can generate capital losses that can be carried forward indefinitely. Moreover, investors can benefit from holding high-growth investments in tax-advantaged accounts, a concept known as ‘asset location.’
- When it comes to philanthropy, smart tax planning can amplify an investor’s generosity while also offsetting current income. Strategies like gifting appreciated stock, for instance, can offer increased benefits to both donors and recipients.
Industrial Renaissance: Diversifying in Europe
- Home country bias and US equity outperformance have led many investors to shun international stocks. For investors seeking increased diversification, however, there are emerging opportunities in European equities.
- Amid an unprecedented rift between American and European defense policy, countries like France and Germany are planning to ramp up military spending in the near future. Over the past month, European defense indexes have soared 20%.
- Across sectors, European indexes trade at attractive valuations compared to their American peers, with an average price-to-earnings ratio about 8 points lower. Given the continent’s looming industrial renaissance, now could be an attractive time to diversify into Europe.
Interested in building out long-form collateral relating to any of these themes? We invite you to reach out to our team today for a discussion of our custom content capabilities.
Craig Hall is founder and president of Marketing Wiz, a financial marketing firm specializing in the independent wealth management space.
