April 7, 2025

At the end of the first quarter of 2025, the global financial landscape continues to present both challenges and opportunities for investors. With recent market volatility and economic uncertainties, the importance of a well-diversified portfolio has never been more apparent. At Omni 360 Advisors and Omni Wealth, we believe that global diversification is key to managing risk and maximizing potential returns in today’s complex investment environment.

Market Update: 2025 Year-to-Date

The first quarter of 2025 has been marked by significant market fluctuations. As of March 10, 2025, we’ve seen:

• The S&P 500 experiencing its steepest weekly drop since June 2022
• The Dow Jones Industrial Average facing its largest weekly decline since March 2023
• Increased volatility, with the CBOE Volatility Index exceeding 26

These market movements have been driven by various factors, including:

• Ongoing trade tensions and tariff uncertainties (Yahoo Finance)
• Concerns about global economic growth (Reuters)
• Potential government shutdown looming
• Anticipation of the Federal Reserve’s policy meeting (Federal Reserve)

The Case for Global Diversification

In light of these market conditions, a globally diversified portfolio offers several key benefits:

• Risk Reduction: By spreading investments across different geographic regions, you can mitigate the impact of localized risks such as political instability or economic recessions.
• Access to Broader Opportunities: Global diversification opens up access to markets and sectors that may not be available in your home country, potentially capitalizing on high-growth industries worldwide.
• Currency Diversification: Investments spread across different currencies can act as a natural buffer against exchange rate risks, enhancing the stability of returns.
• Smoother Performance Across Market Cycles: Markets in different regions often follow distinct economic cycles, allowing for more consistent and predictable growth over time.
• Enhanced Growth Potential: Tapping into emerging markets and established economies outside your home country can lead to improved returns, especially when domestic markets are underperforming.

Tailoring Diversification to Your Risk Tolerance

At Omni 360 Advisors and Omni Wealth, we understand that every investor has a unique risk profile. We work closely with our clients to create customized portfolios that align with their individual risk tolerance and financial goals. This may involve:

• Adjusting the balance between domestic and international investments
• Incorporating a mix of asset classes, including stocks, bonds, and alternative investments
• Regularly rebalancing the portfolio to maintain the desired risk level

Looking Ahead: Market Expectations for 2025

While past performance doesn’t guarantee future results, market analysts are cautiously optimistic about the remainder of 2025:

• After two strong years for stocks, more muted gains are expected in 2025 (Forbes)
• Opportunities may arise in both growth and value stocks in the U.S. market (M Capital Management)
• Investors should remain vigilant about potential headwinds, including higher interest rates and geopolitical uncertainties (CNBC)

Take Action: Ensure Your Portfolio is Properly Diversified

In these uncertain times, it’s crucial to have a well-diversified portfolio that can weather market volatility while capitalizing on global opportunities. If you’re unsure whether your investments are being handled appropriately or if your portfolio is adequately diversified, we invite you to reach out to Omni 360 Advisors and Omni Wealth for a comprehensive portfolio review.

Our team of experienced financial advisors can help you:

• Assess your current investment strategy
• Identify potential gaps in your portfolio diversification
• Develop a tailored plan to optimize your investments for long-term success

Stay informed and proactive in your financial journey. A diversified portfolio is not just a strategy—it’s a safeguard for your financial future.