A division of Synergy Financial Advisers
Market Update:
Q1 2025
Shreemati Varadarajan
Chief Investment Officer - Synergy Financial Advisers
​​
Market Overview:
US Markets:
US stocks experienced a sharp decline, with technology stocks leading the losses. The Nasdaq fell over 4%, and the S&P 500 dropped over 3%. The uncertainty around US economic growth and trade policies has contributed to these market moves. Additionally, the "Magnificent 7" stocks entered a bear market, losing more than 20% from their December peak. Defensive sectors, such as utilities, gained as investors rotated away from riskier assets.
Bond Yields and Commodities:
Bond yields dropped, with the 10-year Treasury yield falling to just above 4.21%. Gold saw a slight drop and a pullback, likely driven by margin selling, while Bitcoin also slipped below USD 78,000. Despite recent fluctuations, investor flows into gold continue as part of broader risk management strategies.
Adviser Messaging to Clients: Staying Focused on Risk-Adjusted Outcomes:
Market Volatility is Expected:
Short-term movements can be unsettling, but they do not impact the long-term financial goals. Staying invested through market cycles has historically been the best approach.
Diversified Portfolios Provide Stability and Avoid Panic Adjustments:
Well-diversified portfolios are structured to navigate market uncertainty, balancing risk and opportunity. A well-diversified mix of equities and fixed income helps manage the overall volatility within the portfolio while optimizing risk-adjusted returns. While tactical adjustments may be considered based on individual circumstances, there is no need for panic-driven changes.
Focus on Long-Term Goals:
Our investment approach is built to navigate market cycles by focusing on long-term objectives rather than short-term fluctuations. Our investment philosophy and methodology remain solid, regardless of temporary market shifts.
Portfolio Considerations:
Equities: Continue maintaining diversified exposure to equities to capture long-term growth.
Fixed Income: Fixed income remains a stable foundation, offering protection during periods of volatility.
Gold, Defensive Assets, and Commodities: While gold saw a pullback, selective allocation for the asset class remains relevant where needed in a balanced portfolio.
​​
General Advice Disclaimer
The information in this publication or any dissemination of information in any form is not intended to be and does not constitute financial advice, insurance advice or any other advice or recommendation of any sort offered or endorsed by Synergy Financial Advisers.
The information is not to be relied on as investment, legal, tax or other advice as it does not take into account the investment objectives, financial situation or particular needs of any specific investor.
References may be made to past performance of investment products and it may not be indicative of future results. Buying insurance policy or investment product may require long-term commitment. An early termination of the policy or product usually involves high costs and the surrender value payable may be less than the total amount paid. Please refer to the relevant documents such as product summary or policy contract for the exact benefits and features.
If you need clarification, please do not hesitate to ask your adviser. You should not make any decision based on the information without undertaking independent due diligence and consultation with your adviser.
The information provided and / or this advertisement has not been reviewed by the Monetary Authority of Singapore.