THE WEEK ON WALL STREET
Stocks moved lower last week as investors swung from exuberance to disappointment on news over tariffs and inflation. The S&P 500 Index fell 1.53 percent, while the Nasdaq Composite Index retreated 2.59 percent. The Dow Jones Industrial Average slid 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, declined 1.29 percent.
FACT OF THE WEEK
On March 31, 1889, the Eiffel Tower is dedicated in Paris in a ceremony presided over by Gustave Eiffel, the tower’s designer, and attended by French Prime Minister Pierre Tirard, a handful of other dignitaries and 200 construction workers.
In 1889, to honor of the centenary of the French Revolution, the French government planned an international exposition and announced a design competition for a monument to be built on the Champ-de-Mars in central Paris. Out of more than 100 designs submitted, the Centennial Committee chose Eiffel’s plan of an open-lattice wrought-iron tower that would reach almost 1,000 feet above Paris and be the world’s tallest man-made structure. Eiffel, a noted bridge builder, was a master of metal construction and designed the framework of the Statue of Liberty that had recently been erected in New York Harbor.
Eiffel’s tower was greeted with skepticism from critics who argued that it would be structurally unsound, and indignation from others who thought it would be an eyesore in the heart of Paris. Unperturbed, Eiffel completed his great tower under budget in just two years. Only one worker lost his life during construction, which at the time was a remarkably low casualty number for a project of that magnitude. The light, airy structure was by all accounts a technological wonder and within a few decades came to be regarded as an architectural masterpiece.
MARKET MINUTE
An Up and Down Week
Stocks started the week with a sharp rally after the White House said it may “give a lot of countries breaks” on reciprocal tariffs. The positive momentum continued into Tuesday, with the Nasdaq and S&P 500 outpacing the Dow. Then, midweek, news that the White House was planning additional tariffs on all cars made outside the U.S. rattled markets. On Friday, investors reacted to a warmer-than-expected inflation report and lower consumer sentiment, putting further pressure on stocks as the week closed.
Noise vs Signal
There can be a lot of noise in the market from time to time. This can make it hard for investors to interpret information as they search for the actual signal. Last week, investors were trying to interpret the White House decision to impose tariffs on all cars and some car parts made outside of the U.S. While some automakers are domestic and others are foreign-based, the question is whether companies will absorb the additional costs, pass them on to consumers, or look to build factories in the United States. Separating the noise from the signal may take time, which can be more challenging when the markets react to new tariff updates as they are announced.
FINANCIAL STRATEGY OF THE WEEK
Building Your Legacy
Carve your name on hearts, not tombstones. A legacy is etched into the minds of others and the stories they share about you.
Shannon L. Alder
The desire to leave a legacy may be the height of altruism for it is a gift to the future, the benefit of which you may never witness, nor ever feel its appreciation by others.
Creating your legacy does not happen overnight, and it doesn’t come without strategy and hard work.
Create Your Vision: You should have an end in mind before you begin. Start by reflecting on what you value and care most about. Consider your passions and the unique skills you have. Your career and hobbies are good places to start. Be sure to ask your friends and family to weigh in. They may offer a perspective that you don’t see about yourself.
Determine Your Legacy: Think about the legacy you wish to leave and the impact you want to make. A legacy can come in many colors. It can be financial, institutional, instructional, or wish fulfillment, or the passing of values and life lessons.
Develop a Strategy: A legacy will not happen without a blueprint and the persistent pursuit of your objective. A strategy can help you organize your efforts and keep you on the path that leads to success.
Live Your Legacy: A legacy is not only what you leave behind but the impact you make on others while alive that they carry into the future. Be sure to live your values with your family, at work, and in your community. Nothing is more likely to survive you than the impact on the lives you touch today.
Have a great week!