This week, I’ve asked our firm’s Director of Investments and Co-Host of The Wealth Mindset Show, Austin Wilson, to weigh in on the recent market volatility. Currently, the market is in a correction (10% down from all time highs), which we haven’t experienced in a bit. So, I thought for my readers, it’d be a good idea to check in on things, as well as get some solid thoughts and advice on what’s happening in the markets. Enjoy!
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Stop The Bleeding
By: Austin Wilson
When a patient is losing blood fast, the doctor’s first priority is to stop the bleeding. It’s not glamorous, and it’s often painful, but it’s a critical step to stabilize the patient and set the stage for recovery. Think of it like this: no matter how hard the road to recovery may seem, you’ve got to stop the bleeding first.
Now, let’s talk about a kind of bleeding we’re facing as a nation: the national debt. As of January 2025, the U.S. national debt has reached a staggering $36.2 trillion—about $106,000 per citizen. This is a result of years of government spending outpacing tax revenues, with the 2024 deficit alone hitting $1.83 trillion. If this goes unchecked, it could drag down economic growth, increase borrowing costs, and limit the government’s ability to make important decisions in the future.
Whether you like him or not, President Trump has made efforts recently to address this issue. While his communication of the rationale behind these changes may upset some, his administration has concentrated on cutting wasteful government spending. The creation of the Department of Government Efficiency (DOGE) is an attempt to streamline federal operations and reduce unnecessary costs. We’ll see how effective it is, but it’s a sign that the government is starting to get serious about reigning in spending.
Another piece of his fiscal plan involves tariffs on imported goods. These tariffs increase the revenue side of the equation. These tariffs act as a form of consumption tax on consumers buying foreign products. If you buy U.S.-made goods, you won’t feel it as much, but if you prefer imported goods, you could end up paying higher prices. The goal here is twofold: generate more revenue and level the playing field in global trade.
Of course, these changes have rattled financial markets recently, pushing stocks into the first correction in quite a while, but history has shown us that markets bounce back. Investors with patience and a long-term view will find that the hard times pass, and brighter days are ahead.
This volatility is also a reminder that in times like these, it’s more important than ever to work with a trusted financial advisor. At Hixon Zuercher Capital Management, we’re committed to helping our clients build and protect wealth for the long haul—so they can enjoy their dream life and tackle any challenges that come their way.
