What if I told you that in just 29 days the U.S. market took investors on a wild ride, saw trillions in value vanish and then reappear.
April 2025 wasn't just volatile, it was financial whiplash. While many investors were left dizzy and disoriented, others saw the chaos coming and turned turbulence into opportunity.
The numbers tell a dramatic story.
The fact is the U.S. broad market index dropped 4% in April, but that statistic hides some of the real drama. At its worst point, the index plummeted 13%, a correction that hasn't been seen in a few years happened in just a few short days.
New tariffs and unexpected policy shifts sent shockwaves throughout every asset class, from stocks, bonds and commodities, to currencies. Nothing was immune.
But here's what most people missed.
The storm had been brewing for a few months.
Back in January, markets were celebrating new highs, and we were warning about U.S. market valuations being stretched beyond their historical norms. We stressed diversification, not just as an investment cliché, but as essential protection against what we saw on the horizon.
By February, the strong U.S. job market provided a sense of security. Consumer spending had remained resilient, offering what seemed to be a safety net.
By March, there were more warning signs that couldn't be ignored. Rising inflation, some new tariffs, consumer confidence beginning to crack.
That's when we began looking for opportunities in the chaos that would soon follow.
When April's volatility hit, we didn't panic, we took the opportunity to buy.
We increased our position in Fortinet, a cyber security leader operating globally in an industry with strong growth potential. In an uncertain world, cybersecurity isn't a luxury, it's essential infrastructure.
We also deepened our investment in Netflix. While others focused on subscriber numbers, we saw a company strategically managing its costs while diversifying its revenue streams.
These moves reflect our core philosophy.
Volatility creates opportunity for those prepared to act.
The U.S. GDP growth slowed in Q1 2025, largely due to accelerating imports before tariffs took effect. We would also expect that more economic weakness is on the horizon.
What's the key indicator that we're watching now. It's employment.
Jobs have been America's backbone. Any cracks there can signal deeper problems ahead.
While many investors were caught in April's economic merry-go-round, the Matco Global Equity Fund weathered the storm better than most.
Down 2.9% from April 1st to April 29th, 2025, and 3.81% from December 31, 2024 to April 29, outperforming broader markets.
Our global diversification strategy isn't just about spreading risk, it's about positioning for opportunity regardless of where it emerges.
In markets driven by headlines and tweets, we remain committed to looking beyond the noise, because the most successful investors don't just survive volatility, they thrive because of it.
We remain committed to acting long term and relying on our active management approach to navigate and benefit from current market conditions.
