| Trying to time the market often leads to missed opportunities | A well-diversified portfolio helps wealthier short-term volatility | Staying invested long term is key to building lasting wealth |
When Donald Trump announced tariffs in April – on what was dubbed ‘Liberation Day’ – global markets reacted dipping sharply. While markets later steadied, uncertainty is never too far away. In fact, geopolitical events, global tensions and market reactions are expected and normal – they are regular parts of investing.
The elusive ‘perfect time’
It’s understandable to feel hesitant when the outlook is unclear, but waiting for the ‘right’ moment to invest often results in missed opportunities. Markets have historically recovered – history shows some of the best investment days followed the worst days, although trying to predict when is notoriously difficult.
Staying rational in a reactive market
Headlines can lead to emotionally driven decisions, like selling investments too soon, but making investment decisions based on emotions rather than strategy rarely lead to better outcomes. A well-diversified portfolio is constructed to handle short-term volatility, allowing you to focus on your long-term financial goals instead of reacting to every market move.
Time in the market
Being invested for the long haul tends to outperform efforts to jump in and out of the market. Consistent market participation is more effective than trying to time short-term ups and downs. In essence, it’s not about timing the market – it’s about time in the market. It may be an old adage, but it’s a good one!
Keep focused
We can help you build a plan that reflects your personal goals, time horizon and comfort with risk – giving you the confidence to invest calmly and with clarity, no matter how the markets behave.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.