April 2025
“Patience is the art of concealing your impatience.”
-Joey Adams
Ignore the correction? I was inclined to ignore the correction and share some of the stories of how we help people. That is what really matters anyway. It is not about the Dow being up or down by a bunch of points or owning a certain stock. What matters is that we get you to your destination. What matters is the plan. The plan is your story and how we help you be confident in your retirement date or in the purchase of your lake home or whatever other dreams you have. With the market screaming so loudly, I will indeed give that toddler some attention in this letter, and we will focus on the stories another time.
We are in a correction and have been for some time. It really started months ago, back in September, when the Federal Reserve spooked people with their actions. The market started to sell off, but as you know, the buyers came right back and would not let it happen. Although we moved slightly higher after that, it was not with real conviction and strength. That sell off was the first real distribution we had seen in almost two years. Then in January, DeepSeek was released, the Chinese AI engine. This one really rocked the markets, albeit for a short time. Suddenly every investor was considering the possibility we had the whole artificial intelligence thing all wrong. (Wouldn’t be the first time for something like that.) Again, the market recovered but with even less enthusiasm.
Corrections are a normal, healthy part of market cycles, and this one is no different. In fact, up until last week I would even have said this one was nothing to be proud of and indeed kind of boring.
April 2nd, “Liberation Day,” which will probably be more precisely known as Trump tariff day, tipped the market completely over. All the energy and focus was downward in a swift waterfall selloff. Whatever buyers had been there completely stepped away and the sellers took over. Now we actually see some fear in the market (the most crucial element for a real correction). A good correction should reset prices, but it should also shake out the weak shareholders, those who should never have owned those shares in the first place. Ideally it should also weed out the traders and speculators and inject some healthy fear and respect into those that remain. They are the players that are in and out and create the volatility and fear among the wonderful companies that we, investors of high-quality assets, actually own. Ownership is the key for effective long term wealth creation, but it is not easy. The speculators are the cowards, in and out, happy to get a nickel here or there on the backs of investors like us. We like it when they are less brazen.
This time is the same as all the other times. Each time there is a crisis and correction the news media salivates at the opportunity to spread fear and discontent and get people excited, so they won’t take their eyeballs away from the TV screen. This is exactly what you should do; however, turn the channel and watch an episode of Last Man Standing or Friends. It seems they are continually running them on some channel. They will at least make you smile.
The 24-hour news channels would love for you to believe that this time is different or worse than any other thing that has happened. It is not. We have corrections all the time. We have crisis all the time. I could start listing them, but you probably wouldn’t even remember most. That is the point. They come and go and the world keeps marching on. Ultimately for us investors that means that society and the economy, and the market, keep marching on as well. Remember when the Covid sell off was so bad we would never recover from it? Remember when Trump got elected the first time and the sell off was unbearable? How about the first time Trump put the tariffs out there and we were all told it would cause the Great Depression all over again. I am sure glad we didn’t listen to them. Or when Biden got in and much to everyone’s chagrin, he left the tariffs in place. Again, we never deviated from our plan. As investors with a sound investment strategy and a holistic financial plan, we are not just flailing in the wind like so many. We are grounded on solid footing. We know from all the other times just like this that if we stick to the plan we are going to be just fine.
Investment Strategy - Just for a moment let me remind you our long-time, successful investment strategy. Here I simplify it greatly:
1. Find the really great companies.
2. Buy them at reasonable prices.
3. Own them.
Happy Easter - As I finish this month’s “Brien’s Bits” we are entering Holy Week. It always gives me chills when I think of the suffering Christ endured for us and the grace we have received. I hope your Easter celebration was awesome. All of us at Collins and Krank are grateful to be the stewards for you and your family.
Taxes - Don’t forget to get us a copy of your latest tax return.
Investor Event – May 21st 10am to 1pm. Space is filling up. If you want a seat, be sure to RSVP to Abby or McKayla at 701-235-0119 before we are sold out!
Have a super day!
Sincerely,
Brien Krank
Financial Advisor, RJFS
Senior Portfolio Manager
Managing Partner – Collins and Krank
Hear me on the radio Wednesday mornings from 7:35 to 7:55 on 1100am The Flag and 970am WDAY.
Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional.
Opinions expressed are those of Brien Krank or of the author in the attached articles and not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. There is not guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance does not guarantee future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Individual investor’s results will vary. Raymond James is not affiliated with Nick Murray or First Trust.