As President Trump takes office, he is greeted with unusually high stock prices, a situation that can make the financial markets more sensitive to changes in policy. This unique challenge means that decisions made during his presidency could impact the market more significantly than usual. No administration has dealt with higher valuations when taking office.
As no one knows what the future holds, we remain committed to actively managing the risk in your portfolio to meet your financial goals. Whatever the impact his decisions may have, we aim to achieve our risk parameters and keep your financial plan on track.
Historical Market Valuations at Inaugurations
S&P 500 CAPE Ratios at the Start of Presidential Terms (1929 – 2025)
(CAPE = Cyclically Adjusted Price to Equity)

- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: January 27, 2025
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
Best Invest Advise EVER!
Bryan Bourgeois, CEO/Founder of Shorebreak Capital, discusses why 90% of investors fail and how to avoid these common investment mistakes with Conner Small, Partner at Redwood Investment Management, Shorebreak Capital’s dedicated asset manager.