July 29, 2025

Navigating Market Volatility in Late Summer: Strategies for Calm Seas

As we move into late summer 2025, the markets are likely to feel a bit more turbulent than usual. Trading volumes tend to lighten up this time of year, while global trade tensions, changing views on interest rates, and ongoing geopolitical uncertainty all add to the sense of unpredictability.

With so much uncertainty in the air, it helps to take a closer look at what’s driving the ups and downs in today’s markets.

Earlier this year, news about new U.S. tariffs and ongoing supply chain issues shook up the markets, causing volatility indexes like the VIX to spike to their highest points since the pandemic began. Things settled down by July, with markets even reaching new highs, but many experts warn that the calm of summer can be short-lived. With important policy decisions and economic updates on the horizon, it makes sense for investors to stay alert.

Pro Strategies for Uncertain Markets

Diversify Your Portfolio
No one area of the market is completely protected from sudden news or quick downturns. That’s why professionals suggest spreading your investments across different types of assets—like stocks, solid bonds, real estate, and a bit of cash—to help cushion the blow when things get rocky. Sectors like healthcare, utilities, and consumer staples have proven especially sturdy during past late-summer storms.
Don’t Try to Time the Market
Market swings at the end of summer can catch just about anyone off guard. Instead of making big, emotional moves—like selling everything or totally changing your investment mix—advisors usually recommend staying the course. History shows that some of the best returns have come right after late-summer dips, so patience and the occasional portfolio rebalance usually work best.
Keep Some Cash and Short-Term Bonds on Hand
Having a little cash or some short-term, high-quality bonds on hand can give you stability—and the freedom to jump on new opportunities as they pop up. But keep in mind, holding too much cash can mean missing out on growth and falling behind inflation, so finding the right balance is important.
Focus on Defensive and Value Sectors
Shifting some of your investments into steady, recession-resistant sectors—like utilities, healthcare, or value stocks—can help smooth out the ride when the markets get bumpy.
Stay Disciplined and Keep a Long-Term Perspective
When markets get volatile, patience really pays off. Investors who stick to their long-term plans, avoid chasing the latest trends, and rebalance their portfolios now and then usually end up ahead of those who react to every headline.

Disclaimer:
This article is for informational purposes only and does not constitute investment, legal, or tax advice. Past performance is no guarantee of future results. Investors should consult a qualified advisor before acting. All investing involves risk, including the possible loss of principal.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

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Navigating Market Volatility in Late Summer: Strategies for Calm Seas

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