Does the Economy’s Shrinking Have You Thinking?

Just a brief check-in after a new report shows the U.S. economy contracted by 0.3% in the first quarter of 2025, marking the first instance of negative growth in three years. 1 Alongside the shrink, the instability caused by trade policies and remaining inflation has the Fed feeling cautious about acting on interest rates. 2 Meanwhile, in the middle of all these cautionary indicators, the S&P 500 and the Dow each had seven-day winning streaks. 3

I understand it can sometimes be difficult to make sense of these up-and-down reports. Wouldn’t it be great if someone could help you do just that?

Here at Wealth With No Regrets®, my team and I actively monitor all the changing indicators, so our clients don’t have to decipher the economic tea leaves. What’s more, those who work with us have the solid foundation of a diversified financial plan to provide certainty in their financial futures even in the midst of uncertain markets.

We’d love the opportunity to do the same for you. Here’s a look at some of the ways we can help ensure your financial goals stay on track:

Focus on Resilience: We work to create a diversified, long-term strategy designed to account for and help weather periodic economic hits.

Seek Opportunities: Even in the midst of market unsteadiness, there is some good news. Today, resilience in consumer spending (+0.7% in March) and cooling price pressures have curbed fears of stagflation. 4 At the same time, the Federal Reserve has signaled caution in making additional interest rate cuts, which has meant competitive high-yield savings options (up to 5% APY), continue to be available. 5

Active Monitoring: We carefully watch these and other economic developments so we’re ready should there be a need to consider any adjustments in your plan. We’ll quickly notify you and work with you to explore all the options for keeping you on track to achieving your goals.

Curious about the benefits of strategic investment planning? Let’s schedule a call. I’d love to share more insights on how we can position your portfolio for both resilience and long-term success, as part of a fully integrated plan.

Sincerely,

Barry

_________________________________________________________________________

“Courage is not the absence of fear. It is going forward with the face of fear.”
– Abraham Lincoln

Disclosure: Wealth With No Regrets ® is an investment advisor in Georgia. Wealth With No Regrets ® is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. Wealth With No Regrets® only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Wealth With No Regrets’® current written disclosure brochure filed with the SEC which discusses, among other things, Wealth With No Regrets’® business practices, services, and fees is available through the SEC’s website at: www.adviserinfo.sec.gov These materials are for informational purposes only. It is not intended to provide, and should not be relied on for, any tax or legal advice. Please consult a qualified professional before making decisions about your financial situation. Any reduction in taxes would depend on your specific tax situation. Investments in securities entails risk and are not suitable for all investors. This is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. It is important that you do not use email to request, authorize or effect the purchase or sale of any security, to send fund transfer instructions, or to effect any other transactions. Any such request, orders, or instructions that you send will not be accepted and will not be processed. Content prepared by Advisors Excel. This commentary reflects general trends, not the specific results of your portfolio. Every investment strategy should be personalized to your goals, risk tolerance, and time horizon.
Sources:
1 Jeff Cox. CNBC. April 30, 2025. “U.S. economy shrank 0.3% in the first quarter as Trump policy uncertainty weighed on businesses.” https://www.cnbc.com/2025/04/30/gdp-q1-2025-.html?utm_campaign=mb&utm_medium=newsletter&utm_source=morning_brew. Accessed May 1, 2025.
2 Chuck Mikolajczak. Reuters. April 30, 2025. “Late rally propels Dow, S&P 500 to slight gains.” https://www.reuters.com/business/us-stock-futures-tepid-ahead-data-storm-megacap-earnings-2025-04-30/. Accessed May 1, 2025.
3 Amalya Dubrovsky, Karen Friar and Alexandra Canal. Yahoo Finance. April 30, 2025. “Stock market today: Dow, S&P 500, Nasdaq come back from steep lows after GDP print to cap turbulent April.” https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-come-back-from-steep-lows-after-gdp-print-to-cap-turbulent-april-200112050.html. Accessed May 1, 2025.
4 Chuck Mikolajczak. Reuters. April 30, 2025. “Late rally propels Dow, S&P 500 to slight gains.” https://www.reuters.com/business/us-stock-futures-tepid-ahead-data-storm-megacap-earnings-2025-04-30/. Accessed May 1, 2025.
5 Fortune. May 1, 2025. “Earn up to 5% APY on the best high-yield savings account today, May 1, 2025.” https://fortune.com/article/best-savings-account-rates-5-1-2025/. Accessed May 1, 2025

Leave a Comment