April Market Recap: Volatility That Rewards Preparation
April reminded investors that volatility isn’t just noise—it’s a signal. Equity markets plunged after a surprise White House announcement on new tariffs, only to rebound just days later following a temporary pause and selective exemptions. The S&P 500 fell as much as 12% intramonth but recovered to close just 0.8% lower. The Nasdaq even rose slightly, up 0.9%.
Bond markets remained a stabilizing force. The Bloomberg U.S. Aggregate Bond Index gained 0.4%, while the 10-year Treasury yield swung between 3.99% and 4.49%, ending at 4.16%. International equities also contributed positively to diversified portfolios. The U.S. dollar fell sharply, down 4.5%, amid trade policy concerns.
Capital Preservation in the Face of Policy Shock
At Holland Capital Management, we build portfolios using individual stocks, bonds, and cash positions—not pooled vehicles like mutual funds. This gives our clients transparency, tax control, and direct ownership, which is especially critical in volatile environments.
Our proactive portfolio construction process is designed to:
- Preserve capital during market shocks
- Increase tax and liquidity flexibility
- Enable timely rebalancing into dislocations
April’s sharp intramonth swings highlighted the value of clarity and control. While many advisors hide behind layers of packaged products, our clients benefit from knowing exactly what they own—and why.
Economic Snapshot: First GDP Contraction Since 2022
First-quarter GDP contracted 0.3%—the first decline in three years—primarily driven by businesses front-loading imports before tariffs. Consumer spending slowed but stayed positive. Retail sales fell 0.9%, while the savings rate ticked up to 4.6%.
Investor concern now centers on inflation’s path and the Federal Reserve’s response. Markets currently anticipate four rate cuts in 2025, beginning as soon as July.
Market Timing vs. Long-Term Discipline
Volatility spiked in April—the VIX briefly crossed 50 for the first time since the pandemic. But most sharp sell-offs were followed by rapid recoveries. This reinforces one of the costliest investor behaviors: reacting emotionally to volatility instead of rebalancing into it.
HCM’s security-level approach allows us to lean into these moments, using market dislocations to rapidly upgrade portfolios while keeping every client aligned with their personal plan and tax strategy.
Strategy Over Reaction
For long-term investors, market volatility isn’t a risk—it’s the price of admission. April demonstrated that returns rarely arrive in straight lines, and headlines alone don’t define outcomes.
We should talk if you’re unsure whether your current portfolio gives you that level of control or clarity. At Holland Capital Management, we simplify complexity by building custom portfolios from the ground up—one position at a time—designed to match your goals, tax profile, and risk strategy.
Stock market volatility jumped in April
GDP declined in the first quarter
Staying invested has historically been rewarded
