You will no doubt have seen that President Trump’s imposition of tariffs on countries across the globe has created headlines worldwide and caused stock markets to react negatively.
Over the coming days, the story will unfold as countries react to the tariffs. It’s impossible to predict with any certainty how individual countries will respond or what changes Trump might make to the policy moving forward.
While we can’t affect any policy changes or the outcome, we can help you navigate the headlines and market turbulence, and remind you why it’s key to stay calm during periods of uncertainty.
Here are seven things it’s important to remember right now:
1. Think long term
The most successful investors think about the long term and ignore short-term fluctuations.
As legendary investor Charlie Munger of Berkshire Hathaway famously said, “The big money is not in the buying and the selling, but in the waiting.”
2. Market volatility is normal
World events have always impacted and will always impact the world’s stock markets. Think back to five years ago and the COVID-19 crisis, or to 2022 when Russia invaded Ukraine.
Markets recovered after both events, and investors who accepted that market volatility is part of investing have been rewarded.
3. Diversification is your friend
Diversification and careful planning mean your investments are positioned to handle temporary downturns.
Short-term losses in the value of your investments could be offset by gains elsewhere.
4. Emotional decisions and knee-jerk reactions can do more harm than good
On the subject of investing, Jack Bogle, founder of Vanguard, once said: “Time is your friend; impulse is your enemy.”
He was right. Reacting impulsively to headlines or taking knee-jerk reactions to events like those we’ve seen in the past few days can harm your long-term financial health.
5. Headlines drive fear, not strategy
Headlines are designed to provoke a reaction and naturally focus on the short term.
In contrast, your financial plan is built on logic, evidence, and the long term.
6. Trying to time the market is a mistake
When markets fall, some investors are tempted to try to time the market by moving to cash and then looking for the perfect moment to reinvest.
In our experience, investors who try this will likely experience lower returns in the long term than those who stay invested.
7. We’re here for you
We know you might still be worried despite what we have said in this email.
If that’s the case, we’re here for you.
Simply contact us in the usual way. We’re here to provide clarity and peace of mind.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.