After the recent election, investor confidence rose sharply - this was reflected in stock prices. The markets were excited about fewer regulations, reduced government spending, and promises of renewed economic growth. However, in recent weeks, the stock market has experienced significant volatility, dropping near correction levels (-10%). So, what's behind this sudden instability? Markets typically react to two main factors: corporate earnings and surprises. Interestingly, the president's campaign clearly outlined his plans, including significant cuts to government spending, increased deportations, and tariffs of up to 60% on trade partners. Despite these promises being well-known, they seem to be at the root of the current market turbulence. I believe the core issue causing today's market uncertainty is the president’s shifting stance on tariffs that could subside with a clear message. This week tariffs are active, suspended the next, only to return again soon after. Although the tariffs actually implemented were less than half of those initially proposed, this inconsistency creates uncertainty and surprise. Given the speed of information and digital access to our investments, that uncertainty and surprise are reflected instantly in market prices. Leading up to the election, many investors and business leaders probably focused too much on positive expectations, like reduced regulations and promises of economic growth. They overlooked the very real negatives associated with the president’s promises. Those negative factors are now becoming clear, and investors aren't thrilled with the outcome, despite the president’s promise of this being an economy "in transition" and economic prosperity just over the horizon. It seems that many who were initially thrilled with the election outcome are now experiencing some buyer’s remorse. Whether or not you agree with the president's actions, this isn't meant as praise or condemnation. What's clear, however, is that he's delivering on the promises the American people voted for in November. Ultimately, four years will come and go, and I firmly believe presidential action tend to have temporary impacts. However, if current market fluctuations make you anxious, it might be time to review your financial plan. Sometimes an adjustment can help; other times, staying the course is wiser. Either way, let's talk about it. Don't let market volatility rob you of your peace. Jose Alvarez Founding Advisor Harvest Horizon Wealth Strategies The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.