In this timely episode, host Dave Alison sits down with Dr. Apollo Lupescu, a 21-year veteran of Dimensional Fund Advisors, to address pressing investor concerns during periods of economic transition and policy change. From the potential impact of tariff policies to the concentration risk of tech giants, their conversation offers clear insights for financial advisors to help their clients navigate market volatility. Dr. Lupescu offers a balanced perspective on inflation expectations, global diversification benefits, and why historical market performance during periods of policy uncertainty suggests maintaining disciplined investment approaches. Discover practical strategies to address client concerns about market fluctuations while keeping their long-term financial plans on track, regardless of which administration is in office or what economic challenges emerge.

Statistics:

• The "Magnificent Seven" tech companies represented approximately 34% of the S&P 500 and 55% of NASDAQ at the time of recording
• Historically, tariffs generated up to 90% of federal revenue, compared to less than 2% in modern times
• Services account for approximately 80% of U.S. GDP, potentially limiting tariff impact on the overall economy
• Many consumer electronics contain components from dozens of countries despite final assembly in a single location
• Stock markets have historically doubled in value even during major global conflicts
• Since 1926, only 12 calendar years have seen market losses exceeding 10%
• During a previous administration with significant tariff policies, the U.S. stock market grew approximately 80% over four years
• Countries targeted by tariffs have often outperformed the U.S. market during the same period, with examples of China seeing 20% gains and Mexico posting positive returns while the U.S. experienced flat or negative performance
• U.S. Steel Corporation stock price fluctuated significantly around tariff announcements, falling from approximately $40 to $20 per share, then rising to almost $45 before falling again after implementation
• During the 2020 pandemic, markets dropped approximately 30% but ended the year up about 18%
• In a previous tariff implementation on washing machines, about 12% of a 20%

tariff was passed on to consumers