We’ve Been Here Before

The headlines shout “crisis”, markets wobble, and it’s natural to feel a bit on edge. At the moment, it’s Trump’s latest round of tariffs making the noise. Whether you agree with his style or not, the immediate impact has been a sharp fall in global share prices — with the S&P 500 down around 15% so far this year.

Sound familiar?

It should do — we’ve been here before, many times. Remember COVID? At the time, it felt like the sky was falling. Wall-to-wall panic in the news and in the markets. But we got through it. Markets recovered, the world moved on. And yet, every time we hit a rough patch, someone always says those famous last words: “This time it’s different.”

Spoiler alert: it’s not.

When markets are jittery, it’s always worth going back to basics. What are you actually invested in? You own a slice of some of the biggest and best companies in the world — businesses that exist to make a profit and create long-term value for their shareholders (that’s you). The stock market, on the other hand, reacts like an emotional teenager — wildly overreacting to every bit of bad news.

We don’t know exactly when things will bounce back — and they might get worse before they improve — but history shows us that recovery does come, and staying the course pays off.— "This too shall pass"

Of course, how this feels to you depends on where you are in your financial journey:

1. Saving for Retirement
This is actually good news for you. Yes, markets are down — but that means you’re buying in at lower prices. Think of it like snapping up quality items in a sale. Keep investing regularly and this volatility works in your favour over the long term.

2. Retired and Taking an Income
Your situation is different — but there’s no need to panic. A few key points to remember:

• Diversification is working. Your investments aren’t all in one basket — they’re spread across different types of assets and global markets, which helps cushion the blow during wobbly times. While there will still be short-term ups and downs, it’s far less bumpy than if you were only in US shares. I touched on this in last month’s note — and it’s especially relevant now. Alongside shares, your portfolio also includes bonds and other interest-based investments.
• Zoom out. This recent dip has been sudden, yes — but tracking your investments day-to-day can make it feel worse than it is. It’s much more helpful to look at the bigger picture over the longer term.
• Don’t panic and sell. Staying invested is key. Selling out during a dip locks in losses — something we’ve always planned to avoid.
• You have a plan. Every client we work with has a cashflow forecast, showing how long your money is expected to last.

So yes, things feel a bit rocky right now. But no, it’s not the end of the world.