What’s going on in the markets?
Markets are reacting negatively to the unfolding ‘Trump Tariffs’ story, with global share prices falling sharply.
What should we do?
Before acting, it’s worth revisiting how we approach investing:
- Goals first – We invest to achieve specific life outcomes, not for entertainment or just to play Monopoly in real life. Every decision should be driven by your goals.
- Asset allocation matters – The mix of shares, property, cash, etc., is based on the return we need to reach our goals. It shouldn’t be arbitrary. It should be built on a clear purpose – funding our most cherished hopes and aims for when the pay cheques stop.
- No free lunch – Returns come from staying the course, especially through the rough patches. If our goal requires equity-like returns, then owning shares—despite the volatility—is non-negotiable.
- Politics ≠ strategy – Markets may react to political noise, but we don’t base long-term strategies on it. There is no durable history of evidence to suggest it is a dependable way to invest for the long-term.
- This too shall pass – Markets tend to recover. We don’t try to predict short-term moves. We position portfolios for the next 100% rise, not the next 10%-20% drop.
- Every past fall looks like a buying opportunity. Every current fall feels like a mistake. That’s human nature—but it’s often wrong. It’s ok to feel nervous / uncertain, but it’s never ok to react in our portfolio to it.
So, what can we do?
- Nothing – Often the hardest, but frequently the best response. Staying the course has a strong historical track record. Diversified investors who just ignored the news, tend to over time, do better than those who try and get too smart.
- Rebalance – If shares are down and our portfolio is out of alignment, it might make sense to top them up from the cash / fixed income portion.
- Lean in – If you’ve got surplus long-term cash, consider investing more while prices are lower.
Personally?
I’m always stuck between “I don’t own enough” (when markets rise) and “I own too much” (when they fall). But I remind myself:
- My goals are long-term, and today’s prices aren’t what matters.
- I’m still buying—lower prices mean better value.
- Nearing retirement? A good plan already includes more stable assets for this exact reason.
Volatility is part of investing. It always has been and always will be. The key is how we plan structurally—and how we respond emotionally.
And remember, we are under no obligation at all to buy or sell just because the market offers a certain price.
If you want to chat, please feel free to reach out to Jon or myself.
So, what can we do?
- My goals are long-term, and today’s prices aren’t what matters.
- I’m still buying—lower prices mean better value.
- Nearing retirement? A good plan already includes more stable assets for this exact reason.
Volatility is part of investing. It always has been and always will be. The key is how we plan structurally—and how we respond emotionally.
And remember, we are under no obligation at all to buy or sell just because the market offers a certain price.
If you want to chat, please reach out to Jarrod on (07) 3286 1322.
General Advice Warning
The information contained in this communication is of a general nature only and does not take into account your personal financial situation, needs, or objectives. You should consider whether the information is appropriate to your specific circumstances before acting on it. We recommend seeking advice from a qualified financial adviser before making any financial decisions. The information provided is based on current laws and regulations, which are subject to change. Please note that past performance is not indicative of future results.
