by Austin Boyce, Advisor, CFP®
Valentine’s Day is sneaking up on me again – it’s a time I reflect on the things I love, both personally (my wife and my daughters) as well as my love of the markets. Both of my loves require diversification and patience (sometimes a lot of patience!). At home, I diversify my attention differently each night, responding to the biggest need at that time. However, diversification in our portfolios requires a longer-term perspective.
As I look back on 2025, it is a good reminder of the strategy behind our portfolio construction. The chart below shows how different asset classes performed for the year.
It takes patience to stick with diversification when there is the temptation to chase the hottest returns as one index outperforms another in the short term. It also takes patience to remain a disciplined long-term investor, looking beyond headlines or global uncertainty that may cause you to question whether being invested is the right decision. There are highs and lows in the market and in life.
For example, the S&P 500 had the worst day of 2025 on April 4th (-6%), but just 5 days later it had the best day of the year (+9.5%). Staying invested through low periods ensures you reap the rewards from the good times: last year was the first time since 2022 that the EAFE (developed international) outperformed US equities.
Your Goals are Our Goals
At SoundView, we stay aware of current economic conditions and rely on a team approach when considering a change in strategy. We don’t let the day-to-day headlines or market swings guide how we manage portfolios. Your goals, time horizon, and risk tolerance matter when it comes to portfolio construction, and this can be very specific to each client.
By staying disciplined and diversified, we help ensure your portfolio remains aligned with what matters most to you—today, tomorrow, and over the long run.