Diversification Works

If you’ve read any financial headlines lately, you’d think the market is falling apart. Between talk of recessions, trade wars, and global uncertainty, it’s easy to feel like everything is going wrong. But here’s the thing: the headlines don’t tell the whole story.

Yes, U.S. stocks are down this year. That part is true. But when you zoom out and look at the full picture—what’s really happening across all parts of the market—it’s not nearly as bleak. In fact, some parts of the market are doing just fine.

So, what’s actually going on?

Let’s take a look at how different parts of the market have performed so far in 2025 (as of April 23):

Asset Class	ETF Ticker	YTD Return (%)
U.S. Stocks	VOO	-8.69%
International Stocks	VEA	+8.02%
Emerging Markets	VWO	+0.93%
Real Estate (REITs)	VNQ	-2.51%
Bonds	BND	+0.86%

Sure, U.S. equities are having a tough time. But international markets are showing strength, emerging markets are holding steady, and bonds are quietly doing their job. Real estate has dipped a bit, but it’s far from a disaster. That’s not a meltdown—it’s a reminder of why we spread our investments around.

The Power Of Diversification

Diversification is one of those words that gets thrown around a lot in finance, but it’s really just a fancy way of saying: “Don’t put all your eggs in one basket.” When one area of the market is struggling, another might be doing well. And over time, that balance can help smooth out the ride.

Think of it like a well-balanced meal. You wouldn’t eat only pasta every day (tempting, maybe). You’d mix in some protein, veggies, maybe a little dessert. Same with your investments—a mix of different assets gives you better nutrition (financially speaking) and helps you stay healthy for the long haul.

Headlines are loud—your plan is steady

It’s totally normal to feel uneasy when the market gets bumpy and the news feels dramatic. But that’s exactly why we build diversified portfolios in the first place. Not to avoid bad days entirely (those will come), but to make sure you’re not overly exposed when one part of the market hits a rough patch.

So the next time the headlines scream panic, remember: you’ve got a plan built to weather the storm.