The rapidly evolving geopolitical environment and rise of conflict in the world has investors concerned. With headlines focusing on uncertainty, it’s natural to feel unsettled, but when it comes to investing it’s important to take a long-term view.
While events such as the current conflict with Iran can have a significant short-term impact on share markets and superannuation returns, these events are part and parcel of any long-term investment journey. History tells us that every crisis, market downturn and recession comes to an end.
Avoid reactive decisions
Markets rise and fall so every few years there will be a period of negative returns. Be cautious about making changes to your investments. Selling when markets have dropped may lock in your loss and you risk missing out on positive returns if the market recovers.
Holding on for the long term increases the likelihood of recovering your losses. Buying and selling of assets based on short term returns can be costly. A financial adviser can also guide you to ensure your portfolio reflects your individual tolerance for risk.
Remain focused on your long-term goals
Short-term reactions to market movements may delay your progress toward your long-term goals. Investing in a volatile market requires maintaining a long-term perspective, avoiding emotional, reactive decisions, and staying diversified. Key strategies include continuing regular investments to buy assets at lower prices, rebalancing portfolios to manage risk, and viewing downturns as opportunities for future growth.
Be assured, we are monitoring the market closely and actively employing strategies to ensure our clients’ long-term interests.
Are there any silver linings?
If prices drop significantly, there may be a buying opportunity, but seek advice first. Over time, things will settle, just as they have before. Give it time. If you go back in history, markets always bounce back. Given time, the norm will return, recovery will happen, and we can all sleep better. If you have concerns about the impact of this period of volatility, please get in touch.
General Advice Warning: The information provided in this article is general in nature and does not consider your particular investment objectives, financial situation, or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Dobbrick Financial Services (Gympie) Pty Ltd ABN 48 931 205 109 and Dobbrick Financial Services (Ipswich) ABN 86 100 184 521 & DFS Oakland ABN 64 340 527 395 and their advisers are authorised representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.
