March 2026 | Disaster, Opportunity, and a Rise in Productivity

I hope this newsletter finds you recovered from Daylight Saving Time, though I think I’m still feeling it! In this month’s edition of PWA Insights, we will cover taxes, market updates, and share some friendly reminders.

TAXES

We are close to a month out of the tax filing deadline of April 15th, 2026. For those of you that file an extension, the deadline is October 15, 2026. All original Schwab tax forms should be available at this point, though there is always the chance of corrected 1099s appearing in March.

MARKET UPDATE

I know I’ve expressed appreciation for our client’s understanding of the market before, but it really does make an advisor smile when a few percentage point’s drop in the market leads to multiple phone calls of, “is it time to buy?”

Baseline success as a financial advisor is the ability to keep clients from panic during market downturns, in order that they might stay the course. This way, they refrain from self-destructing by locking in losses that permanently hinder their most precious dreams and goals. However, it is another level of market clarity entirely that enables a client to view downturns not as disaster but as opportunity.

Nick Murray is quoted saying, “declines are temporary, gains are permanent.” Historically speaking, this is nothing but the truth, as every stock market decline no matter how deep, has recovered and gone on to reach new highs. This perspective paired with faith in the enduring value of equities leads to only one conclusion in the face of depreciated prices. Equities are now selling at a discount and the act of purchasing them at said discount will only prove to increase your long-term return.

To my understanding, this most recent dip (small as it was relative to the average intra-year decline) in the market was fueled by the escalating conflict in the Middle East which led to a spike in oil prices, as well as a weak February jobs report. Now, if this was the whole story, perhaps it would be cause for concern. However, a weak jobs report paired with rising GDP growth points to an increase of productivity. Increased productivity and strong economic fundamentals show a market with the potential for further gains, even in the face of bleak news. Of course, I do not believe in market timing and am “in the dark” on the date and depth of the next major market decline.

Regardless, my advice to you would be as follows. If we do happen to see market prices drop further in the coming weeks, consider deploying extra cash, especially if you find yourself in the “accumulation” phase of your financial plan. At minimum, remember in the face of temporary declines, we have planned for this, and the only thing that would call for a change in your investment profile is a change in your goals, or time horizon. Otherwise, we press on.

FRIENDLY REMINDERS

1.     Tax Documents – For those of you with accounts at Schwab, your tax documents can be found through your client login under Accounts>Statements & Tax Forms.

2.     IRA Deadline – The deadline to max out contributions for Traditional or Roth IRAs for 2025 is April 15, 2026. Each individual may contribute $7,000 for 2025, or $8,000 for those age 50 and older.

3.     Backdoor Roth IRA Contributions – If you happen to be a high earner who has passed the phaseout limits excluding you from being able to contribute to a Roth IRA, you might be eligible to complete a “backdoor” contribution.

As always, please feel free to give us a call if you have any questions.

Sincerely,

Brock Hedgecoke, CFP®