Current Market Activity
In what feels like a never-ending stream of headlines, it is important to remember we aren’t even halfway through the year!
During the last 30 days, the S&P 500 stock index dropped ~7%, but then recovered all of it after March 30th. Year-to-date from January 1st, this index is down, but less than 1%, historically a very small amount.
Recently we received word of a two-week ceasefire between the U.S. and Iran reliant on the immediate reopening of the Strait of Hormuz. This news caused a rebound in markets with incredible speed as investors who once could not sell their stocks fast enough, now rushed back in. Our high-quality core stocks such as Google, Amazon, and Royal Caribbean performed nicely.
As stated in the last dispatch, our prediction that relief from this conflict would arrive and that business would continue as usual in the medium-to-long term appears to be coming to fruition. As it has through many conflicts in the past, our firm’s long-term view on fundamental driven investing is still paying dividends. (Literally and figuratively!)
We are very happy that, so far, civilization is not ending as many thought and is in fact alive and well despite the whiplash.
Buffet Interview
Just in the nick of time, we have a new interview from the Oracle of Omaha himself that was released on the last day of March. Our firm highly encourages those of you interested in watching to do so.
Buffet offers age-old wisdom for investors everywhere and continues to embody many of the values our firm strives to uphold. His stoic and pragmatic view of long-term investing, shunning short-term worries in favor of focusing on company performance is a perspective we should all attempt to embody when viewing our investment portfolios.
Buffet notes that when looking to many market dips of the past, this recent dip of 5%-7% is “nothing” compared to a true market crash of 30%-50%. He reminds us to hold course with quality investments, and to avoid falling into the trap of many amateur investors in panic selling.
Trump Baby Account Updates
For clients with young ones on the way or having recently arrived to their family, our firm has continued to closely monitor the developments of the “Trump Accounts”.
Managed by BNY Mellon and Robinhood, these accounts will feature a $1000 deposit funded by the government for babies born between January 1st 2025 and December 31st 2028. This money will be invested in the S&P 500 until the age of 18 for the benefit of the child.
Parents can enroll using IRS form 4547, which our firm or another accountant can help to file, if eligible.
In addition to the $1,000 given by the government, non-deductible contributions of up to $5,000 annually may be made to the account by parents, employers, or philanthropists.
For those of you who may qualify, we encourage you to reach out to our firm with any questions you might have. As always, we are here to guide you in your financial life, and these accounts can be a powerful tool for future generations to take advantage of.
What now?
While we can never hope to time the perfect bottom of a dip in the market, our firm continues to see many opportunities to buy wonderful companies at bargain prices, one that should be taken advantage of for those with “dry powder” on the sidelines.
It is important to remember that often, the best time to buy stocks is during periods of great uncertainty, and that by the time the dust settles markets have often returned to their previously high prices.
If you have considerable cash buildup in a checking account, or for those who have certificates of deposits maturing and want to see your options before reinvesting at lower interest rates, we encourage you to contact our office.
It would be our pleasure to offer our guidance to assist you in finding your best options.
Market Performance
| Sector / Asset Class | Year-To-Date Return |
| S&P 500 large stock bucket | -0.4% |
| Tech stocks group | -1.4% |
| Utility stocks group (ex. income) | +9.9% |
| Staples stocks (food, household) | +6.0% |
| Gold | +10.5% |
| Bitcoin | -16.5% |
| Bonds – Fixed Income (incl. income) | +0.75% |
| Preferred Stock (incl. Income) | +2.6% |
| CD rate, 1-year average | +1.9% |
Thank you!
Thank you for reading this month’s dispatch. If you would like to give us a short email with your thoughts and reactions, please do so. We deeply appreciate hearing from you.
Warmest regards,
Dougherty Investment Advisors
A Tradition of Excellence
4048 Deltona Blvd | Spring Hill, FL 34606
P.S.
We are deeply honored by your nomination of our firm for the Hernando Sun Readers Choice Award in the Financial Planner/Advisor category!
Voting is open until April 17th and can be done daily. If you live in Hernando County and would like to show your support for our firm, every vote counts.
We have included the link to vote below for your convenience. Thank you again!
https://www.hernandosun.com/rc2026/#/gallery?group=534674
