When I was invited to attend a leadership roundtable for select Schwab advisors in Arizona, I’ll admit I hesitated. Time is always precious, and I wasn’t sure whether this event would provide enough value to justify the trip. Happily, I went. And happily, I was completely wrong. The discussions, insights, and strategies I gained were invaluable—not just for me, but for our entire team at LCM and, ultimately, for you, our clients.
One of the most impactful sessions featured Schwab’s top investment strategists, some of the most respected names in the industry. LizAnn Sonders (Chief Investment Strategist), Kevin Gordon (Senior Investment Strategist and a bona fide rock star in the space), Jeff Kleintop (Chief Global Investment Strategist), Kathy Jones (Chief Fixed Income Strategist), Michael Townsend (Managing Director of Legislative and Regulatory Affairs), and Peter Zeihan (Geopolitical Strategist) shared their expert insights on what’s shaping today’s market and what investors should be paying attention to. Though I’m still processing much of what was shared and discussed, here are just a few of the things that stood out:
The Factors Driving Uncertainty
A key takeaway from one panel was that some of the most important market shifts right now are widely misunderstood. For example:
The Fed is likely to respond to economic data that hasn’t even surfaced yet due to reporting lags.
For example, government employees impacted by recent layoffs aren’t yet reflected in official employment numbers, meaning job market weakness may not appear in reports until as late as June or July. Plus, many businesses are in stall mode, which will further impact employment and earnings data later in the year.
While trade tensions continue to make headlines, the whole picture is… complicated.
The best example of this is the likely impact (or lack thereof) of tariffs on Mexico’s stock market. Because many of the goods exported from Mexico are produced by major US corporations like Coca-Cola, Ford, and GM, the highly touted tariffs won’t necessarily have the impact many expect.
Spending cuts will require cuts to key programs.
To reach the administration’s goal of $1.5 trillion in spending cuts, policymakers will be forced to consider reductions in critical programs like Medicare and Social Security. While nothing is certain yet, these changes could have broad implications for retirees and future financial planning strategies.
Uncertainty is almost certain to drive continued market volatility.
The Uncertainty Index (the key indicator of economic and policy uncertainty) is spiking. When uncertainty is high, investors tend to react emotionally, causing short-term turbulence. The upside of that volatility is that disciplined investors focused on long-term opportunities are likely to benefit.
Bonds are signaling an economic slowdown.
According to Kathy Jones, the bond market is flashing warning signs of slower economic growth to come. This puts the Fed in a tough spot. She believes bond yields will likely come down in the second half of the year as investors adjust their expectations.
All that said, one thing remains clear: market volatility in 2025 is a given. It is very possible that things will get a bit crazy, but after listening to these thought leaders dive deep into the details, I walked away optimistic that the market and the economy will ultimately become positive. As Warren Buffett famously said, “The stock market is a device for transferring money from the impatient to the patient.” As patient investors focused on long-term growth, we know that this blip shall, indeed, pass.
Empowering Trusted Advice
Beyond market trends, another key theme was how cutting-edge technology is transforming the way advisors deliver trusted, efficient, and personalized financial guidance. The need for trusted investment advice is greater than ever. Investors today face a complex landscape of inflation, geopolitical risks, and evolving tax laws, making it harder to navigate wealth preservation and growth strategies alone. For individuals and families with accumulated wealth, another key challenge is efficiently transferring wealth to the next generation—and ensuring their heirs have the knowledge and guidance to sustain it.
Advancements in digital systems are making it possible to answer this call by helping advisors who apply technology to deliver the best possible services and investment guidance.
For the past 18 months or so, our team has been focused on leveraging technology to elevate our ability to serve you with greater efficiency and ease. Secure Cloud storage enables seamless integration among our growing toolkit of applications, as well as secure file sharing with clients. The Teams platform makes virtual meetings easier than ever. Upgraded security provides better protection for your data and ours. Most recently, we have been implementing Salesforce, a trusted customer relationship management system, with the goal of delighting every client with every interaction. We’re also exploring the potential of using AI to assist with certain processes—though the jury is still out on whether it’s time to make that leap!
Since we have a relationship with Schwab Advisor Services, we are fortunate to have access to a powerful technology stack and institutional-grade resources that would be incredibly costly to build independently. These include:
Institutional-grade custody services that ensure secure, reliable custody of your assets.
A broad range of investment options, including alternatives, private equity, and tax-efficient strategies tailored to affluent investors.
Advanced portfolio management and reporting tools that support seamless integration across platforms and help optimize financial planning.
Highly competitive Pledged Asset Lines to provide liquidity to clients who need short-term bridge loans for almost any circumstance.
Exclusive Schwab benefits for our clients, including perks like a rebated AMEX Platinum Card for clients with over $10M in non-retirement assets at Schwab.
Final Thoughts
First, I’ve learned a valuable lesson: that time away from the office can be time well spent. The opportunity to have a front-row seat at detailed discussions about the factors that are impacting the economy, and the markets gave me insights that I expect will help bolster our own strategies. And while our technology is typically working behind the scenes to help us serve you better, I like knowing that we are working with leaders in the industry to be the best that we can be.
Looking ahead, 2025 has already been a year of major change, and as we move through an election year, market volatility will likely continue. But as we’ve seen time and again (and the Schwab team’s comments reinforced) sticking to a long-term investment strategy, backed by thoughtful research and experienced advisors, remains the wise path forward. At LCM, we’re committed to ensuring that you, your family, and your wealth remain on a steady course—no matter what the market throws our way. If you’d like to discuss how these insights impact your portfolio, we’re always here to help.
