As we close out the first week of March, the US stock market is sending a clear message: the party's over. For the third week in a row, the S&P 500 Index, along with most major US equity indices, has been on a downward spiral. The week's performance has been nothing short of dismal, with the S&P 500 plummeting 3.6% through Thursday's close. This puts it on track for its worst week since September 2024.
It's not just the S&P 500 that's feeling the heat. Most major US equity indices are now in negative territory on a year-to-date basis in 2025. The only exception is the Dow Jones Industrial Average, which has managed to eke out a paltry 8 basis points gain through Thursday. But let's be real, that's not exactly a cause for celebration.
The last time we saw a streak of negative returns for the S&P 500 persist for more than just a couple of weeks was back in August 2024, when the index fell for four consecutive weeks. It's clear that the market is sending a strong signal that something is amiss.
So, what's behind this sudden downturn? Is it a case of buyer's remorse, or are there deeper underlying issues at play? Whatever the reason, one thing is certain: the market is sending a clear message that it's time to take a closer look at your investment strategy.
As investors, it's essential to stay informed and adapt to changing market conditions. The key is to stay calm, stay informed, and make data-driven decisions. It's not the time to panic, but rather to take a step back, assess the situation, and make adjustments as needed.
In the words of the great Warren Buffett, "Price is what you pay. Value is what you get." As the market continues to fluctuate, it's crucial to focus on the value of your investments, rather than their price. By doing so, you'll be better equipped to navigate the ups and downs of the market and make informed decisions that align with your long-term goals.
So, what's next? Only time will tell. But one thing is certain: the market will continue to evolve, and it's up to us to stay ahead of the curve. Stay informed, stay vigilant, and stay focused on your goals. The market may be unpredictable, but with the right mindset and strategy, you can ride out the storm and come out stronger on the other side.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.
Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.