A discussion on the recent market pullback, its implications, and whether investors should be concerned—or see it as a buying opportunity.
NEW YORK, March 7, 2025 /PRNewswire-PRWeb/ --
Host: Alex Matovski, Managing Director, PWM Advisors
Guests: Michael Terry, CFP, CIMA & Matt Cianci, CFA
Alex Matovski
Welcome to "A Conversation with PWM." Today, we're discussing the recent market pullback, its implications, and whether investors should be concerned—or see it as a buying opportunity. Joining me are Michael Terry, CFP, and Matt Cianci, CFA. Let's dive right in.
Market Pullback & Buying Opportunities
Alex: Mike, what's your take on the current market situation? Should investors be worried?
Michael Terry: Not at all, Alex. What we're seeing right now is a typical market pullback—about 6% off the highs. The market has turned slightly negative for the year, but I see this as a short-term correction rather than a major downturn. Historically, pullbacks of this magnitude are normal and can create attractive entry points for investors.
Alex: What about the recent tariff discussions? Some investors worry this could be a sign of prolonged economic turbulence.
Michael: I think the tariff talks are being used more as a negotiating tactic rather than a fundamental policy shift. They're a bargaining chip, not a new long-term strategy. Markets may react in the short term, but I don't see this as a catalyst for a sustained decline.
Economic Outlook & Investment Strategy
Alex: Matt, what indicators are you watching to gauge market stability?
Matt Cianci: A few key things stand out to me. First, high-yield spreads remain well below their 2024 levels, which is a positive sign that credit markets aren't showing distress. Second, the 2-year Treasury yield is falling but hasn't dipped below 2024 lows, suggesting that market stress isn't as severe as some fear.
Also, only two sectors, Consumer Discretionary and Technology—are down as well. That tells me this isn't a broad market selloff but rather a selective decline in specific areas. Finally, the advance-decline line is flat since February, meaning roughly half of stocks are up while the other half are down. The market is being pulled lower by a few names, not widespread weakness as we saw in 2022 when the Advance Decline was declining.
Alex: So in your view, these factors suggest that now might actually be a time to add exposure rather than retreat?
Matt: Absolutely. If you're a long-term investor, these moments create opportunities rather than risks.
Technical Levels & Market Support
Alex: Mike, from a technical perspective, where do we stand?
Michael: We are currently ~6% off the February 18 high. The 200-day moving average sits at 5,725, a key level to watch. Additionally, Fibonacci retracements based on the last two major market lows (August 2024 and October/November 2023) converge around 5,625—which would represent another ~2% downside from current levels. That's a potential area of support if the pullback continues.
Final Thoughts
Alex: So, to summarize, while markets are pulling back, we're not seeing signs of major distress. Credit spreads remain contained, certain sectors are holding up, and technical levels suggest potential support ahead. Would you both agree that for disciplined investors, this could be a time to stay the course or even consider adding exposure?
Michael: Absolutely. The fundamentals remain strong, and I see this as a normal correction rather than a sign of broader weakness.
Matt: Agreed. The data supports staying invested and taking advantage of potential opportunities as they arise.
Alex: Great insights, as always. Thanks, Mike and Matt, for the conversation. And to our readers, stay disciplined, stay informed, and reach out to us at PWM Advisors if you have any questions about your portfolio strategy.
Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth.
This message and any attachments contain information, which may be confidential and/or privileged, and is intended for use only by the intended recipient, any review; copying, distribution or use of this transmission is strictly prohibited. If you have received this transmission in error, please (i) notify the sender immediately and (ii) destroy all copies of this message.
Media Contact
Alexander Matovski, PWM Advisors, 1 (201) 241-6447, [email protected], https://www.pwm-advisors.com/
Matthew Cianci, CFA, PWM Advisors, 1 (908) 331-0374, [email protected]
SOURCE PWM Advisors
Share this article