Over the past weeks, unless you have been hiding under a rock, you may have noticed headlines filled with news about tariffs, trade wars, and sharp moves in global markets. If you’re wondering what’s going on – and more importantly, what it means for your investments – you’re not alone.
At Abacus, we know that market noise can feel overwhelming, especially when it’s paired with uncertainty. But rest assured: this isn’t the first time we’ve seen turbulence, and it certainly won’t be the last
More importantly, it’s times like these that separate short-term panic from long-term progress.
Financial markets thrive on certainty. Investors want to know what to expect – even if it’s not always good news. When a government suddenly announces sweeping tariffs, and there’s no clear plan or timeline, it sends a strong signal to markets: “We don’t know what’s going to happen next.”
That uncertainty is what causes market dips.
What Does This Mean for Your Investments?
Here’s the most important part: this is not the time to panic.
Volatility in the market is normal. It’s the price we pay for long-term returns, and it is the price of admission!
If you want your investments to grow meaningfully over time, you have to expect some bumps along the way. In fact, history tells us that some of the biggest gains come right after the biggest drops.
If you sell when things are low, you risk missing those rebounds.
That’s why at Abacus, we don’t just react emotionally to the news. We act with discipline.
The Long Game Is What Counts
This isn’t the first time markets have wobbled, and it won’t be the last. But every dip we’ve seen – from the Great Depression to the dot-com crash to COVID-19 – has eventually been followed by a recovery. Often a strong one.
Volatility isn’t something to avoid. It’s something to embrace, understand, and manage. It’s what gives you the opportunity to buy good companies at lower prices. It’s what allows long-term investors to outperform short-term traders.
As Warren Buffett once said:
“The stock market is a device for transferring money from the impatient to the patient.”
So, ask yourself:
- Do you want to panic sell and lock in losses?
- Or do you want to stay calm, stay invested, and take advantage of opportunities?
Even better — do you want to lean in, and invest more while prices are low?
- Call Abacus on 01656772222 for a free initial consultation
Pippa Vaughan Avery is an Executive Director and Charted Financial Advisor at Abacus Assurance Financial Services Ltd