When times are tough, we’re here to support you and answer any questions or concerns you have.
Since the US invaded Iran, as well as the devastating loss of human lives, the conflict has raised political and financial concerns.
We understand that these events may have left you feeling unsettled. And, at times like these, our primary role is to help you manage financial anxiety that may arise as events unfold.
Looking back at how the stock market has behaved throughout history shows that it is resilient. It has repeatedly proven itself capable of overcoming and recovering following historical global events.
“The first rule of compounding: Never interrupt it unnecessarily” – Charlie Munger
Over the years, the stock market has experienced frequent declines and occasionally encountered extreme volatility and uncertainty.
Instead of attempting to avoid these declines, we typically advise that your best course of action is to do nothing. Staying invested will mean you’re well positioned to benefit when markets rebound and begin to recover.
As we often remind you, financial markets reward long-term investors but often punish those who overtrade or make their decisions based on short-term news or during times of market stress.
Remember why you invested in the first place and keep your long-term goals front of mind.
Rather than giving in to the anxiety that comes with market downturns, this approach could help to strengthen your resolve and give you the courage you need to sit tight and ride out market volatility.
Helpful reminders to keep in mind as the current crisis continues to unfold
- A declining stock market could prove good news if you invest regularly. During difficult periods, you’ll be buying cheaper units, and history shows that these periods don’t tend to last for long.
- Try to avoid checking your portfolio. Let the stock markets do what they’re going to do while you get on with things, without stress creeping in and affecting your day-to-day life.
- Think long term. Don’t allow your 20-plus-year investment horizon to be derailed by the latest news bulletin.
- Your portfolio is designed to weather exactly this sort of storm. While trying to time these events is a loser’s game, the winning strategy is to stay the course, remain invested, and let time do its work.
We’re here to help
If you’d like to discuss how current events may affect your financial plan, please don’t hesitate to reach out.
