Quarterly Newsletter - Q2 2025

Market Performance

The Trump Trade rapidly turned sour in the first quarter of 2025 as the new administration went into warp speed to implement its agenda. During the honeymoon period between election and inauguration days, Wall Street seemed to assume that the talk of cutting government spending and implementing new tariffs was all bluster. Two months later, there has been a rude awakening to the reality of what Trump 2.0 might bring and the economic data and global markets are shifting rapidly in response.

The University of Michigan consumer sentiment survey is normally a well-followed data point, but the recent release on March 14th got extra attention. Consumer sentiment dropped rapidly, especially among households earning more than $100,000; the percentage of consumers expecting unemployment to rise over the next 12 months doubled; a record-high level of consumers think that business conditions are deteriorating; and both 12-month and 5-to-10-year inflation expectations shifted significantly higher.

In a recent interview, President Trump declined to rule out the possibility of a recession as a result of implementing his economic agenda. He emphasized the potential long-term benefits of his policies and that there may be some growing pains in the short-term as a tradeoff.

In response, US markets have sold off with the Russell 3000 down almost 11%(1) from its 2025 high, the NASDAQ Composite down more that 16%(2), and the rate on the 10-year touched as low as 4.11% compared to 4.81% in January(3). This is not to say that other areas of the market haven’t benefited from this environment. Germany’s DAX 40 index has been up as much as almost 18%(4) this year while the All-Countries World Index ex-US ETF (ACWX) was up more than 10%(5) for the year at its 2025 peak.

(1) Yahoo! Finance 3,511.90 intraday high on 2/19 and 3,118.54 intraday low on 3/31
(2) Yahoo! Finance 20,099.39 on 2/19 to 16,854.37 on 3/31
(3) Yahoo! Finance 4.81% on 1/14 and 4.11% on 3/4
(4) Yahoo! Finance 23,476.01 on 3/18 from 19,909.14 close on 12/30/24
(5) Yahoo! Finance 57.62 on 3/19 from 52.16 close on 12/31/24

Tax Season in Full Swing

Tax season is in full gear, and with that in mind, we wanted to share a few articles that could provide not only some last-minute tax tips for this year, but also good practices to implement for future years.

• Taking advantage of Spousal IRAs for non-working partners
• Tax-efficient investment strategies for portfolios of all sizes
• Using self-employment income to reduce taxes and increase tax-advantaged savings
• Tax tips for young workers to implement sooner rather than later
• Changes to inherited IRA rules now require annual RMDs starting in 2025

The effectiveness of all these strategies will vary widely based on your personal circumstances. Please consult your financial or tax advisors.  

Market Corrections and the Current Impact of Tariffs

Much of the volatility in markets recently has been driven by the capricious nature of US tariff policy. One thing that markets don’t like is uncertainty and the daily fluctuations between implementing and not implementing has been the definition of uncertain. While the US does have some of the lowest tariffs and lowest non-tariff trade barriers to trade in the world, there is no shortage of positive or negative takes on how this will play out in the long-term.

Only time will tell if the proposed tariff policy has a positive impact, brings a recession upon the US, or gets dropped altogether, but the immediate headlines in financial news have portrayed doom and gloom. While the 10-15% drop in US stock indexes hasn’t been an enjoyable experience for most, these types of pullbacks are a healthy part of bull markets; they occur fairly often and they don’t always lead to bear markets. We can expect volatility to continue for as long as uncertainty exists around US trade policy. However, performance in other asset classes such as international stocks has helped to offset domestic stock losses in a well-diversified portfolio.

How to Sell Your Business

Schechter CEO Marc Schechter recently recorded a video outlining some important considerations for small business owners who may be looking to sell in the coming years. Among the topics Marc addresses are how to prepare your business for a sale before soliciting offers, who might be the best potential buyer for your business, the timing and proper valuation of the business itself, tax implications and proactively managing their impact, and the non-financial considerations for the owner and their family as they transition to the next phase of their lives.

If you are considering selling your business in the near future, reach out to our team of experts to see how we can assist with maximizing the value you receive from your sale. Watch the video:

Schechter in the News

Marc Schechter interviewed on Schwab Network - Marc shared why he prioritizes portfolio allocation over dollar cost averaging. Rather than timing the market, he focuses on maintaining a balanced mix of stocks, bonds, and other assets to align with long-term goals. Because in the end, it’s not about short-term moves—it’s about long-term growth. Watch the video here.

Worth Magazine | Top RIA Firms 2025 - We’re excited to share that Schechter Investment Advisors has been named to Worth's 2025 list of top RIA firms! This prestigious recognition is based on our strong AUM over $500 million, a focus on high-net-worth clients, and unbiased, independent advice. Read more.

Alternatives Are Core To What We Do - Aaron Hodari talks to host Alex Cavalieri, Head of Marketing at CAIS, about the importance of alternative investments education. Listen to the conversation here.

Financial Advisor Magazine interviewed Brad Feldman about how Clients with “Boom-Or-Bust Incomes” Need Special Planning - Musicians, athletes and social media influencers are among those with boom or bust incomes, and their advisors need to understand the unique nature of their lifestyles in order to guide them through the good and bad times, a group of advisors and coaches said. Read more.

Schechter Teammate Spotlight

Brad Feldman, JD, CLU® specializes in financial and investment planning, wealth transfer, estate planning, and charitable giving for high-net-worth families. Brad also advises closely held companies on business succession and non-qualified deferred compensation programs. Watch the video:

Prasad Mohan is a Senior Investment Advisor at Schechter, specializing in advising ultra-high-net-worth families on investment and financial planning. He joined Schechter in 2018, bringing 10 years of experience in the financial services industry. Watch the video:

New Teammates

We're thrilled to introduce two new teammates, Leanne Porter and Caitlyn O’Leary, who have recently joined our team as Service Client Professionals. Welcome aboard!

Caitlyn O’Leary
Caitlyn brings expertise from finance, insurance, and real estate. She holds a Finance degree with a minor in Accounting. Living in Southeast Michigan with her fiancée and three dogs, Caitlyn enjoys CrossFit, snowboarding, and outdoor adventures with her pets.

Leanne Porter
Leanne brings nearly a decade of experience in boutique wealth planning, excelling in client services, project management, and guiding clients through transitions. A Florida native now in North Carolina, she has a passion for travel, reading, and wellness. Leanne holds a bachelor’s in business administration and organizational leadership from Central Michigan University.

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Disclosure
While information presented is believed to be factual and up-to-date, Schechter does not guarantee its accuracy, and it should be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Investments market value is exposed to many factors such as the operational an financial conditions of the relevant company growth prospects, change in interest rates, the economic and political environments, foreign exchange rates, shifts i market sentiments. etc. Therefor, no representation is made, or assurance  given that such views are correct and such views may have become unreliable for various reasons, including changes in market conditions or economic circumstances. Such views have been formed based upon information that was available at the time of this newsletter. Nothing in this newsletter should be interpreted to state or imply that past results are an indication of futured performance. Schechter and its affiliates do not provide tax, legal, or accounting advice.  This material has been prepared for information purposes only, and is not intended to provide, and should be relied on for, tax, legal or accounting advice. You should consult you won tax, legal and accounting advisors before engaging in any transaction. Past performance does not guarantee future results. Inherent in any investment is the potential for loss as well as the potential for gain.