Co-Founders' Monthly Note For Financial Advisors

February 2025:

2024 Was A Tale Of Two Halves

It’s easy to stay disciplined when things are going smoothly. When markets rise steadily and portfolios deliver consistent gains, the urge to deviate from the plan feels almost nonexistent. But discipline is truly tested when the tide shifts, and moments of uncertainty creep in.

The irony of easier times is that they can dull our readiness for challenges. When the path has been smooth, it’s human nature to expect more of the same — to relax the guardrails and let emotions sneak into decision-making.

Yet, resilience in investing, as in life, is built not during the good times but in how we prepare for and respond to the hard ones.

As 2025 begins to unfold, it’s worth reflecting on how quickly conditions can shift. A year of strong trends can easily be followed by stretches that test patience. It’s in those moments of doubt, discomfort, and even frustration that the value of a systematic, long-term plan becomes most apparent. While the temptation to chase quick fixes or abandon time-tested processes may arise, those who endure with discipline often find themselves better positioned when conditions turn again.

In this month’s Co-Founders’ Note, we reflect on how sticking to a disciplined, systematic process through both easy and challenging market conditions builds resilience over time. By revisiting the “tale of two markets” from 2024 — where fortunes varied dramatically between the first and second halves of the year — we explore how short-term fluctuations can test resolve but ultimately reinforce the value of long-term commitment. The lessons learned serve as a reminder that successful investing isn’t about avoiding volatility but about enduring it with discipline.

But first, here’s a summary of our take on what transpired in the markets in January.