Market Levels Part III: What might be next and what can you do now?

The Market Levels Part II (March 14, 2025) chart had suggested we might see the levels posted in this chart with the red line just below 39k on the Dow. We breached this area briefly more than once but quickly recovered.

Dow Jones (March 14, 2025) showing a few levels expected and eventually reached

This same chart view replicated as of today (May 1, 2025) shows what ended up happening and where we think this can go next.

Dow Jones (May 1, 2025) showing a few levels that may be next

The recovery and the idea of buying when others were selling was, so far, a positive move. Further, continuing to hold and add where you are able is still a good long term strategy. The key to know right now is that this volatility may not be over. The unfortunate possibility is that we could see this continue for most of 2025 and there are chances of a move back towards those low levels from April. Yet currently, we see an area highlighted in yellow that could be achieved before evaluating further at that point. This may offer you a chance to consider if you have any cash needs for the next 12 months and address them with us during this current reprieve. Otherwise, stick with it, add where you can, and think longer-term (past 12 months at minimum).

What we are currently noticing with our portfolios is that our active management during this past month is bearing some fruit. We believe that at some point in the future, the market will achieve the past high seen at the end of 2024 and values for portfolios could be higher than what they were at that time. To see this for your own scenario, contact us for a quick review of what we see for your holdings and how it relates to your financial plan.

Author: Steve Economopoulos

Published: 5/2/2025

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Important Disclosures: The specifics of the activity presented by the EWM Asset Management team is intended for general information only. The actual impact to your personal portfolio is not represented by the statements made in this document and you should proactively review your monthly/quarterly statements or contact the office to speak to an Advisor to validate your specific transactions. Any charts, graphs, or visual aids presented herein are intended to demonstrate concepts which cannot be fully explained without the assistance of a professional from EWM. Readers should not in any way interpret these visual aids as a device with which to ascertain investment decisions or an investment approach. Only your professional adviser should interpret this information.