Almost 11 months ago, President Trump made a major announcement in the Rose Garden that sent global financial markets into a tailspin. President Trump was using a mostly unheard-of law called the International Emergency Economic Powers Act (IEEPA), to implement global tariffs on more than 60 countries, somewhat erratically. Fortunately, the tailspin in the financial markets was short-lived as new highs were reached just a few months later. April 2, 2025, deemed “Liberation Day” however, commenced a lengthy period of policy uncertainty that still continues to this day - rippling across the world -affecting businesses of all sizes, their supply chains, capital expenditure plans etc. Last Friday, the Supreme Court ruled that IEEPA did not give the President unilateral authority to impose tariffs, and as such, the tariffs are illegal. How did markets in the U.S. and globally react? They barely nudged. A level of uncertainty removed? Sort of. However, the ruling adds more questions regarding tariff refunds for U.S. companies who have already paid billions of dollars to the Treasury, any potential adjustments to already agreed upon trade deals, etc. The main takeaway: uncertainty remains, but staying the course is prudent. Until we see declines in company profits, coupled with a significant decline in consumer spending, both the economy and the market will likely remain resilient.
What’s next?
President Trump stated he would use Section 122 of the Trade Act of 1974 to implement tariffs globally at 15% for 150 days. He can do this without any input from Congress. After that time, the path forward is, you guessed it - uncertain. What seems likely is the leverage President Trump was using in his negotiations seems to be more limited now. Trump Boosts New Global Tariff to 15% After Supreme Court Setback - WSJ
State of the Union – The Power of Sports
Tuesday night was the annual State of the Union address. Rather than talk about all that divides us and the finger pointing across the aisle as who is to blame for all the country’s problems, I wanted to focus on one of the few moments of the speech that saw both sides of the House Chamber rise to their feet – when President Trump acknowledged the US men’s hockey team’s gold medal performance, the first since 1980’s “Miracle on Ice.” It highlights the power of sports and the unity, pride and joy it can bring (even if only for a brief period of time).
Financial Planning/Investment Strategy Corner
Tax season has begun, and maybe some of you overachievers have already filed your returns. Public service announcement: it’s a great time for W-2 employees to revisit their withholdings to see if any changes need to be made for 2026. Surprises that come during tax time are usually not enjoyable. 😊While RSWA does not prepare taxes, we work extensively on tax planning and communicate throughout the year with accountants to try to mitigate, or hopefully eliminate, any surprises our clients may face.
International outperformance continues into 2026
From 2010-2024, U.S. markets outperformed international developed markets in all but three years (2012, 2017, and 2022), and dramatically so. The tide started to turn at the end of 2024. In calendar year 2025, international developed markets (as measured by the EAFE) outperformed the U.S. markets (as measured by the Russell 3000) by close to 15%. During the first two months of 2026, the EAFE index has continued to outperform the Russell 3000 by approximately 8%. The big question: will this continue? Well, my crystal ball is a bit murky, but this type of divergence highlights the importance of a well-constructed, broadly diversified portfolio that has exposure globally. RSWA meets monthly to discuss any potential changes to our models and broader asset allocation decisions. It is something we will continue to monitor and watch closely.
Best of the 207
RSWA is honored to receive the highest recognition in the Best of 207 awards, earning Gold Medals for Wealth Management and Financial Planning! These awards celebrate Maine’s top businesses and services, as voted by the public. Winning for the fourth consecutive year is a privilege, and we are truly humbled by this recognition. We are deeply grateful for the trust our clients and professional partners place in us, allowing us to do the work we love. Our commitment to excellence and continuous improvement remains steadfast. Thank you to everyone who voted for us—we sincerely appreciate your support!
Quick Hits:
- Mexico is one of the most popular Spring break destinations for college kids and families alike – may want to reconsider: Where in Mexico are US travelers currently banned or told to avoid?
- With the calendar turning to March this weekend – that means March Madness (one of my favorite times of the year) is right around the corner. Here are locations for both the men and women’s NCAA tournament: 2026 March Madness: Men's NCAA tournament schedule, dates | NCAA.com; 2026 March Madness: Women's NCAA tournament schedule, dates, times | NCAA.com
- For those of you who have been in the New England area for a while, an interesting comparison of the Blizzard of 1978 vs. 2026: How does Blizzard of '26 measure up to legendary Blizzard of '78?
- I’m getting back into the swing of things (pun intended) – some of the numerous benefits of playing tennis: Tennis: How Does it Benefit Your Health?
Quote:
“Holding on is believing that there’s only a past, letting go is knowing that there’s a future.” – Daphne Rose Kingma
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