Tech Volatility, Tariffs & Staying Focused on the Long Game

Markets have been choppy lately, with tech stocks seeing some of the biggest swings. The recent headlines around tariffs – particularly those targeting China – have sparked renewed concerns about supply chains, costs, and international trade relationships. That’s especially true in the tech sector, which relies heavily on global sourcing for both manufacturing and component parts.
 
While tariffs are a real factor, they’re just one piece of the puzzle. The larger story right now is about valuations and investor expectations. Many tech companies have experienced tremendous growth over the last decade, but they’ve also become highly priced relative to earnings. Metrics like the Shiller PE Ratio and the Buffett Indicator suggest that the broader market, especially large-cap tech, is more expensive than historical norms.
 
When prices are high, even a modest disruption (like a new tariff) can lead to exaggerated reactions. That’s exactly what we’re seeing now.
 
That doesn’t mean tech is “broken” or that innovation is going away. What it does mean is that markets may be repricing risk and adjusting to a more realistic growth trajectory in a higher interest rate environment. That’s a healthy, albeit uncomfortable, part of the market cycle.
 
What we’re keeping in mind:
 
– Market corrections are Since 1980, the average intra-year drop in the S&P 500 has been about 14%-yet in most years, the market still finished higher.

– Trying to time the market is Missing even a few of the best days-many of which follow the worst days-can significantly reduce long-term returns.

– Patience pays Diversified investors who stay the course have historically been rewarded, even through tech bubbles, tariff wars, and uncertainty.

– We’re closely monitoring these developments and adjusting portfolios where needed. But we’re not reacting emotionally – we’re staying grounded in long-term fundamentals.
 
As always, if you have questions or concerns, we’re here for you. Additionally, if you or someone close to you is worried or unsure, we’re happy to offer second opinions or scheduling a brief “Ask Anything” session. We are here and happy to help.
 
With perspective,
 
Tim, Jeff and the Bridgepoint Financial Team
 
Timothy P. Doud
President & Financial Advisor
Bridgepoint Financial, LLC
tdoud@bpfemail.com
www.mybpfinancial.com
 
Jeffrey A. Rittner, CFP®
President & Certified Financial Planner™
Bridgepoint Financial, LLC
jrittner@bpfemail.com
www.mybpfinancial.com