Another year done and dusted, and another year full of financial commentary and dire predictions.
In the first part of the year all the talk was around Trump’s tariffs. The common consensus was it would crush companies, consumers, and the share market in general. The common consensus was for a recession. Then mid year the Israel-Iran war got going, leading to further calls of an economic recession.
All the negative talk has led many investors to selling off assets and/or getting into ‘safer’ assets like cash or savings accounts.
To reflect the volatility associated with Trump and the war, 2025 saw some extremely volatile swings in the share market.
Around 8 April, the S & P 500 was down around 15% for the year. Come the end of 2025, and the S & P 500 is up almost 18% for the year. A huge turnaround of almost 33 percentage points.
If you were one of the investors panicking with the volatility and selling up or investing in less volatile assets, you would have missed out big time.
It is hard to believe that the world share markets are up by so much. If you only listened to the news and all the negativity, you would think your share portfolio would have taken a pounding.
If you ignored the news and looked at your portfolio at the end of the year, you would not know of any wars or tariff drama. You would be stoked with the progress made and think everything is fine. What volatility? What tariffs? What war?
Volatility has always been the price of investing in shares. You can’t get the returns provided by shares by not taking on the downsides. You should never be surprised by a drop in share prices. You should expect it. If you are in the wealth accumulation phase, you may even welcome it.
This year is a prime example in the importance of zooming out from your investments and not being so ‘invested’.
Have a plan and stick to it. If you are someone who panics at the first sign of volatility, either seek further education or come up with a better investment strategy that doesn’t cause you to panic and make rash decisions. It is these spur of the moment reactionary decisions that prove to be the downfall of many investors, making many of us less wealthy than we would be otherwise.
Make 2026 the year you have a plan of attack that allows you to zoom out and ignore the noise. The world won’t come to an end. Your bank account will thank you for it over the long run. The pessimists may sound smart and have logical reasonings, but it is the optimists who thrive and grow their wealth.
If you need an investment plan or recommendations, then get in touch today.
The information contained on this site is the opinion of the individual author(s) based on their personal opinions, observation, research, and years of experience. The information offered by this website is general education only and is not meant to be taken as individualised financial advice, legal advice, tax advice, or any other kind of advice. You can read more of my disclaimer here