Q4 2025 Market Commentary

Staying Disciplined: Putting Life Goals Ahead of Market Noise

After a long stretch of strong market returns, it’s natural to feel drawn toward whatever investments have been performing best recently. It’s also easy to let certain positions grow larger than originally intended. While this is understandable, experience shows that the most reliable outcomes come from staying disciplined, making decisions based on life goals rather than short-term market movements.

The foundation of our approach is simple: every dollar should have a purpose and a time frame. Instead of focusing on market benchmarks or headlines, we start by asking why the money exists in the first place. Your financial plan is designed to support the life you want to live; maintaining your lifestyle, traveling, improving your home, supporting family across generations, giving to causes you care about, funding business interests, and leaving a meaningful legacy.

Markets can move unpredictably in the short term, but over longer periods they tend to grow as the economy and businesses grow. Because short-term swings are unavoidable, our focus is on reducing the risk of needing money at the wrong time. By matching investments to when the money is needed, we lower the chance of being forced into decisions during stressful market moments.

 What This Looks Like in Real Life

We organize financial resources based on when they are likely to be needed:

• Near-term needs (0-2 years): Money needed soon is kept in highly liquid and stable places, such as cash, money market funds, or short-term government and bank instruments. The priority here is safety and access, not growth.
• Mid-term needs (3-7 years): Funds for goals a few years out are invested more conservatively, balancing stability with modest growth.
• Long-term goals (8+ years): Money intended for later years is positioned for long-term growth. While these investments may fluctuate in the short run, they have time to recover and compound over longer periods.

Once these time frames are clear, we consider risk in a very practical way. This includes how much market movement you’re comfortable with emotionally, and how much your overall financial situation can reasonably handle. Income sources, spending needs, available cash, and overall financial strength all play a role. This helps ensure your plan is not only aligned with your goals, but also built to endure market ups and downs.

This approach applies at every stage of life:

• Early career: Building savings, paying down debt, buying a home, and contributing to retirement.
• Mid-career: Supporting education costs, reinvesting in businesses, improving homes, traveling, and strengthening retirement plans.
• Retirement: Ensuring liquidity, generating reliable income, preparing for healthcare needs, supporting family, and giving back.

At every stage, separating short-term safety from long-term growth is essential. This separation helps protect what you need today while allowing future goals the time they need to grow.

Managing the Fear of Missing Out

One of the most common challenges investors face is the fear of missing out, hearing about recent successes and worrying that this may be the “last chance” to participate. In reality, opportunities exist in every market environment, even when they look different from the ones in the headlines.

After several strong years in the markets, it’s wise to step back and review whether current investments still match personal goals. In many cases, even modest adjustments (such as trimming a portion of growth investments) still leave more money invested than just a few years ago. This isn’t about reacting to fear or excitement; it’s about staying aligned with your plan.

When changes do make sense, we take care to manage taxes thoughtfully. This may include selling in a tax-efficient way, offsetting gains with losses, using charitable giving strategies, or placing assets in the most appropriate accounts. Taxes are part of the picture, but they should support, not override, sound planning decisions.

When Markets Become Unsettled: Staying the Course

Just as excitement can lead to chasing performance, fear during market declines can lead to abandoning a well-constructed plan. Market downturns are uncomfortable, but they are also normal. History shows that markets experience regular pullbacks and occasional deeper declines. These periods feel unsettling in the moment, yet they are part of the long-term investing experience.

Discipline matters most during these times:

• Market declines are temporary; your goals are long-term. A properly designed plan does not unravel because markets go through a rough patch.
• Time works in your favor. Money needed soon is already set aside in safer investments. Long-term assets have time to recover.
• Emotional decisions can be costly. Selling during periods of fear often locks in losses and misses the recovery that has historically followed.

Rather than reacting to headlines, we return to the plan. If goals remain the same and investments are aligned with their time frames, staying the course is often the most productive choice. In some cases, market volatility may even create opportunities to rebalance or invest excess cash at more attractive levels.

Closing Thought

Markets will always change. Your goals rarely do. Long-term success comes from staying disciplined, keeping perspective, and focusing on what you can do to control your plan, your allocation, and your decisions.

If you’d like to review your plan, revisit your investment mix, or simply talk through what’s happening in the markets, we’re here to help. Together, we’ll make sure your strategy continues to support what matters most to you.

 *The foregoing content reflects the opinions of Van Hulzen Asset Management DBA "Van Hulzen Financial Advisors" and is subject to change at any time without notice. Content provided herein is for information-al purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful. Van Hulzen Asset Management is an investment advisory firm registered with the Securities and Exchange Commission (“SEC”). SEC registration does not imply a certain level of skill and or expertise. Van Hulzen Asset Management does not provide tax advice, please consult your tax professional for any specific tax related questions.