SFM Observer- March 2025

Glenn Sweeney |

Issued: April 7, 2025

The Dow closed the month of March at 42,001 for a monthly loss of -1,840 points or -4.2%.  The Trump Tariffs are front and center and have been causing volatility in the investment markets because of the on/off nature of statements coming out of Washington.  Heightened uncertainty makes CEOs hesitant to make plans for the future because they don’t know what will happen to their company or their customers and suppliers. 

Some interesting events from the month just passed:

  • Target and Best Buy said their businesses will be hit by tariffs and dropping consumer confidence.  Walmart also lowered their year end profit targets as they are seeing the consumer pull back.

  • Strapped workers are hitting their 401k’s to get out of financial emergencies like a foreclosure or medical bills.  Last year about 5% of account holders made such a move.

  • Warren Buffett is in talks to sell the real estate brokerage company he put together for Berkshire to Compass Inc which is the largest broker in the U.S.  Home sales have been slow the past few years due to limited inventory and the lawsuit that unlocked real estate commissions to negotiation have been headwinds for the brokerage industry.

  • BMW is on the losing end of the trade tariffs.  Their bestselling  3-series entry level luxury car is subject to the new 25% tariff for cars built in Mexico.  Selling for $47,000 the new tariff will be over $10,000 per vehicle.  BMW has told its dealers in the U.S. it will absorb the tariff for now, but it is unlikely to continue on this path.  VW is also a brand with little U.S. production that will be heavily impacted.

  • The value of sports teams just keeps going up.  The Boston Celtics just sold for $6.1 billion.  Two years ago, the Dallas Mavericks sold for $3.5 billion.  The value of broadcast rights just keeps increasing as well as event ticket prices.

Thank you for reading this issue of the SFM OBSERVER.  If you have any comments or questions, please send us a reply.  If you have a friend or associate that might be interested in the SFM OBSERVER, feel free to forward this email.

Until next month,

Glenn Sweeney CFA