Riding the Waves: Staying Invested Through Market Volatility

Recent headlines have once again reminded us how quickly global markets can react to political developments. The latest example? Renewed trade tensions between the United States and China, with the US announcing increased tariffs on certain Chinese imports. As investors digest the potential implications for global trade and economic growth, markets have responded with heightened volatility.

It’s natural for uncertainty to spark concern but reacting emotionally to short-term market movements can do more harm than good. That’s why now is a great time to revisit a key investing principle: staying the course.

Vanguard’s recent article, “The importance of staying invested during market volatility”, highlights why long-term investors should resist the urge to “do something” in response to market dips. One of the most powerful messages from the article is that missing just a few of the market’s best days can significantly reduce your long-term returns and those best days often come during periods of high volatility.

History shows that markets tend to recover from short-term setbacks. Trying to time the market often leads to selling low and buying high, the exact opposite of what leads to investment success.

What can you do during times like these?

• Revisit your goals and strategy. Are your investments aligned with your time frame and risk tolerance?

• Diversify. A well-diversified portfolio helps spread risk and reduce reliance on any one sector or region.

• Stay invested. As difficult as it may be, sticking to your long-term plan is often the best way to ride out volatility.

Market volatility is part of investing, but with the right strategy, it doesn't need to be overwhelming. If you’d like expert guidance to align your investments with your goals, our trusted advisers here at Zinc Wealth are here to help. Get in touch with us today to build a long-term plan that works for you.