The markets have dropped 8.6% from February highs, and uncertainty looms large, but is this really cause for alarm? We're dissecting what's actually happening beneath the headlines in this timely episode of Money Matters.

Greg welcomes his brother John Farrall CFA and Chief Investment Officer for Farrall Wealth to the show, bringing fresh insight into the recent market turbulence. Together, they analyze how uncertainty—particularly around tariffs and trade policy—has triggered supply chain disruptions and significant market volatility. While consumer sentiment has plunged dramatically, they reveal an interesting counterpoint: small business optimism recently hit a near 20-year high after bottoming out just last May.

The brothers dive deeply into the MAG7 stocks (Microsoft, Apple, Google, Amazon, Meta, Nvidia, and Tesla), which comprise approximately 23% of the S&P 500 and 40% of the NASDAQ 100. These market leaders have seen substantial corrections, with some down 16-50% from recent highs. Yet they emphasize perspective: the S&P is only down 4% year-to-date, which is hardly the catastrophe many perceive.

What stands out is their balanced approach to market corrections. Rather than viewing this pullback as something to fear, they frame it as a potential opportunity. "I love going into the store and getting 20% off," Greg notes, comparing stock buying to discount shopping. The discussion highlights how defensive plays like utilities (up 2.5%) and financials (down just 1%) have provided stability while growth sectors have struggled.

Ready to make informed decisions during this market pullback? Listen now to understand why staying consistent, remaining diversified, and potentially increasing allocations during downturns may serve investors well in the long run.

Email Greg at greg@farrallwealth.com with any questions about your investments or the current market environment.

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The opinions voiced in this podcast are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies or investments may suit you, consult the appropriate qualified professional before deciding.