Rough Seas in the Stock Market

Gutmann Stays the Course.

The initial market euphoria over the re-elected U.S. president has faded. Concerns about tariffs and a potential economic isolation of the U.S. are weighing on financial markets.

This volatility highlights how quickly market sentiment can shift. From mid-December 2024 to mid-February, stock prices moved in only one direction - up. Then came the reality check. The assumption that the new U.S. administration would bring stability gave way to a different reality, leading to market corrections.

Lower Equity Exposure Since October 2024.

In times of rising uncertainty, the strength of the Gutmann strategy becomes evident. Markets are volatile - that is a given. What matters is how well one is prepared. Gutmann reduced its equity exposure as early as October of the previous year. Now, it has become clear that our broadly diversified strategy provides both stability and resilience - even in rough seas.
We do not comment on political developments. Instead, we focus on their economic implications – objectively and based on facts. We analyze the consequences for financial instruments, sectors, and individual companies in our portfolio, considering both equities and bonds.

The Fine Distinction.

For our monthly Chartbooks, we have examined the impact of tariffs on individual business models within the Gutmann equity strategy.[1] We have also analyzed how companies are affected by new developments in artificial intelligence.
This level of in-depth analysis makes all the difference. It not only provides a sound decision-making foundation but also enables transparent and trust-based communication with our clients. Our approach is clear: we invest in companies, not in market sentiment.
How deep the current correction will go is uncertain. A prolonged bear market cannot be ruled out. If that scenario unfolds, large technology stocks - whose prices have surged in recent years - are likely to be particularly affected. The Gutmann equity strategy avoids excessive concentration risks in this sector, setting it apart from many popular indices.
The key is to stay invested. Those who let short-term volatility unsettle them risk missing out on long-term opportunities. Gutmann Wealth Management is committed to ensuring that you stay the course - even when markets get choppy.
If you have any questions or would like a personal assessment, please contact your relationship manager.