Diversification

Navigating Market Volatility: The Importance of a Disciplined Investment Approach

After a torrid start to 2025, the US stock market has given back most gains in February. Recent volatility has led some to question if the bull market that began in October of 2022 is coming to an end. I long ago gave up trying to outsmart the market, but I have learned over the years that it's during uncertain times that adhering to a disciplined investment approach becomes essential.

Why Diversify?

For the five-year period ending October 31, 2018, the S&P 500 Index had an annualized return of 11.34% while the MSCI World ex USA Index returned 1.86%, and the MSCI Emerging Markets Index returned 0.78%. The under-performance of many foreign markets again this year have led some of our clients to question the role that global diversification plays in their portfolios, some might even be reconsidering the benefits of investing outside the US at all.

When a Turkey Doesn't Fly

Yesterday, the S&P 500 marked the 3,454th day since its last 20% downturn. This bull market has officially become the longest on record since the end of World War II, more than tripling in value since it started in March of 2009. Add in dividends, and it has quintupled in that period!

So far this year, the S&P 500 is up 6.86% through yesterday.

What’s that?

Your portfolio isn’t up that much?

Well, you’re not alone…

ATX Portfolio Advisors, LLC is a State of Texas Registered Investment Advisory Company. 

Please consider the investment objectives, risks, charges, and expenses carefully before investing in Mutual Funds. The prospectus, which contains this and other information about the investment company, can be obtained directly from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Asset Allocation and/or Diversification do not guarantee a profit or protect against a loss in a declining market.  They are methods used to help manage investment risk. 

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