In an era defined by unprecedented financial uncertainty, investors are searching for clarity amid conflicting signals. Two leading financial experts, Eric Diton of The Wealth Alliance and Victoria Fernandez of Crossmark Global Investments, share their perspectives on navigating today’s volatile markets and positioning portfolios for long-term success.
Understanding Today’s Uncertainty Landscape
“Uncertainty has become a constant companion,” says Eric Diton, President and Managing Director of The Wealth Alliance. He points to the Federal Reserve’s recent Beige Book, which mentioned “uncertainty” 47 times—surpassing mentions during the COVID-19 pandemic, the 2008 financial crisis, and the early 2000s tech bubble.
Meanwhile, Crossmark’s Chief Market Strategist Victoria Fernandez notes that while many expected a hawkish tone from the Federal Reserve’s latest meeting, the outcome offered some relief. “The market took a breath as the Fed signaled potential rate cuts later this year,” Fernandez explains, pointing to a market rally that saw short-term yields drop by about 10 basis points.
Fed Chair Jerome Powell’s willingness to look past temporary price jumps due to tariffs has provided some reassurance to investors. “If an inflationary impulse is temporary, tightening policy might not be the right move,” Powell stated, though he acknowledged, “It’s hard to make that judgment in real time.”
Diversification: The Foundation of Resilient Portfolios
When faced with uncertainty, many investors attempt to time the market—a strategy both experts caution against. Even Warren Buffett acknowledges the futility of market timing, Diton notes. Instead, he emphasizes diversification as “the only free lunch in investing.”
“By spreading investments across assets that don’t correlate, you can mitigate risk and ensure a smoother journey,” Diton advises, particularly for those planning for retirement.
Fernandez agrees with a strategic approach rather than reactive trading. “Do not trade off headlines,” she warns. Instead, she recommends focusing on fundamentals when evaluating investments like high-profile stocks such as Tesla, which she notes trades at “a forward PE of 61” making it “very expensive.”
Fixed Income as a Volatility Buffer
For protection against market turbulence, Fernandez highlights the role of fixed-income investments. “With yields expected to trend lower, a barbell strategy—investing in both short and long-term bonds—can provide a balanced approach,” she suggests. Locking in attractive yields on longer-term bonds can ensure steady cash flow despite market fluctuations.
The Retirement Planning Gap
The current landscape has especially significant implications for retirement planning. With traditional pensions becoming increasingly rare, individuals must take responsibility for their financial futures. Yet Diton points out a concerning statistic: while 73% of working Americans have access to retirement vehicles, only 53% actively participate.
This gap underscores a broader issue—the lack of financial education. “We’re telling everyone you’re responsible for it, but we’re not gonna tell you how to do it,” Diton observes. He suggests that comprehensive financial literacy education could transform society’s financial health.
Personalized Approaches for Long-Term Success
For those nearing retirement, questions about products like annuities often arise. Diton’s answer: “It depends.” Annuities can provide guaranteed income streams—beneficial for emotional investors seeking peace of mind—but decisions should be based on individual circumstances and risk tolerance.
Both experts emphasize the importance of having a strategic plan. By conducting thorough data gathering and making informed assumptions about spending, longevity, and other factors, investors can position themselves for long-term success regardless of market conditions.
As April 2nd approaches—a date Fernandez flags for potential new tariff announcements that could shift market trajectory—both experts advocate for disciplined, fundamentals-based investing over reactive trading. In a world where uncertainty reigns, thoughtful planning and diversification remain the most reliable paths to financial resilience.
