"Success is where preparation meets opportunity"

-Bobby Unser

Good afternoon,

March Follow-Up from December 24’ Newsletter,

In January, we shared our plans to pause taking on new clients until May 2025. This freed up the time necessary to MRI every individual portfolio.  As markets experience downturns, it reinforces why we’re taking the time to ensure every aspect of your financial strategy is perfectly aligned with your unique goals.

As we move further into 2025, it’s clear that the market has taken a turn, and we are seeing the selloffs we anticipated. While volatility is always a part of the investing landscape, it’s important to stay focused on the long-term picture. Much like navigating a stormy sea, it can be challenging to chart a course in turbulent waters. However, it is precisely in these moments that our careful preparation and strategic alignment come into play.

Thank you for your continued patience and understanding as we take this thoughtful, purposeful pause. Our mission is to ensure that when we return to welcoming new clients in May 2025, we do so with the same meticulous care and attention that has always been the hallmark of Kennedy Investment Group.

Market Perspective: Staying the Course Amid Volatility

As we move deeper into 2025, we remain committed to providing meticulous oversight of your portfolios. Our focus on deeper, more thorough reviews ensures that we are always prepared, especially when markets become unpredictable.

Lately, market volatility has returned, which is a natural part of the investing journey. Over the past 20 years, the S&P 500 has experienced declines of 10% or more from an all-time high 11 times—roughly once every two years. More moderate 5% declines occur even more frequently, averaging twice a year. As of now, the market is down 9.3% from its peak on February 19th, which, remarkably, was less than a month ago.

While these declines may feel unsettling, history reminds us that they are a normal part of investing. More importantly, our portfolio construction is designed to weather these periods without the need for dramatic shifts. By maintaining a disciplined approach, we can remain patient and take advantage of opportunities that arise when others are forced to react impulsively.

How We Are Positioning Portfolios

The recent decline has been led by last year’s high-flying stocks, while defensive areas—such as healthcare and consumer staples—have held up well. Bonds have also provided stability, as interest rates have moved lower. This is a prime example of why diversification is so important; it allows us to absorb market swings without overexposure to any single risk.

With the market down just under 10%, we are making careful adjustments—trimming gains in areas that have remained strong and selectively adding to positions that now offer better value. At this point, measured rebalancing is appropriate, but we will remain patient and wait for clearer signs before making larger shifts.

Best Regards,

Jack W. Kennedy III, CFP®, AAMS

CEO, KIG

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Any opinions are those of Jack W. Kennedy. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Past performance is not indicative of future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification.

All expressions of opinion reflect the judgment of Kennedy Investment Group and are subject to change. There is no assurance any of the trends mentioned will continue or that any of the forecasts mentioned will occur. Economic and market conditions are subject to change. Investing involves risk including the possible loss of capital. The S&P 500 is an unmanaged index of 500 widely held stocks. It is not possible to invest directly in an index. The market performance noted does not include fees and charges which would affect an investor’s returns. Past performance may not be indicative of future results.

Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value. Kennedy Investment Group does not render legal or tax advice. Please consult a qualified professional regarding legal or tax advice.