Reflect and Refocus | AWM Insights #234

Key takeaways

• 2025 delivered robust global returns, with international and emerging markets at the top, and diversification rewarding disciplined investors.

• Episodes of volatility—like the April drop triggered by Liberation Day and tariff concerns—showed how abruptly markets can swing, putting even the most seasoned investors to the test.

• Abandoning your strategy to chase market timing, especially around headline events such as the Venezuela military incident and energy sector surges, often turned quick gains into quick losses.

• Markets digest news with incredible speed; attempts to act faster rarely succeeded, reinforcing the value of process-driven investing.

• True strength in 2026 comes from repeatable routines: controlling your actions, running your playbook with intention, and tuning out speculative urges or FOMO-driven trades.

Reviewing the 2025 Season—Volatility, Resilience, Reward

2025’s opening quarter was steady, but by spring, the field got rough. April brought volatility with Liberation Day news and shifting tariffs. The markets dropped sharply—down around 20% amid multiple 5% down days. Not long after, a single day erased much of the damage with a historic rally, the biggest on record in point terms. Throughout, questions swirled: “How will tariffs impact the outlook? Is it time to move to the sideline?” Many investors let the news dictate their next call. But those who played disciplined, diversified defense found themselves rewarded as the year closed remarkably strong across global markets. For disciplined families, it was a clear lesson: diversification is the backbone of a winning season.

Market Timing and the Speed of Play

The playbook for the year was tested again in January 2026 after a weekend military event in Venezuela. On Monday, energy prices and names like Chevron spiked—retail traders charged in, seeing fresh opportunity. But just as quickly, the market served its own lesson: by Tuesday, those spikes reversed and energy was down, leaving reactionary traders underwater. Host Mena Hanna summed it: “If you made that trade, you’re just down, and you’re down a pretty good chunk, while markets as a whole are up.” This scenario illustrates what every professional athlete knows: winning comes from consistency. Markets process events at lightning speed—reactive bets don’t build real advantage.

Building Championship Habits for 2026

Moving into this new season, the advantage goes to those following repeatable processes and focusing on what’s controllable. Evaluate your savings and investment habits. Are you sticking to your strategy, or getting distracted by momentary noise or speculative behaviors? Justin Dyer’s advice stands: “Control what you can control.” Diversification remains a core move, especially when geopolitics and headlines add uncertainty. Run the right play this year—no single event, however shocking, should trigger a new game plan overnight.

Run the Right Play—Own This Season

Building and sustaining wealth looks less like a highlight reel and more like a season built on disciplined execution. Trust your process, refine your habits, and make every move with intention. Run your family’s playbook—measured, diversified, and rooted in process—so the scoreboard reflects not just resilience but progress, regardless of how wild the market gets. That’s how legacies are built, one purposeful play at a time.