Market volatility may be a given, but when your wealth is invested, it’s not always easy to hold your nerve. In fact, if you’re an investor, it can take gargantuan effort to resist reacting to sharp stock market drops.
While you may hear the “don’t panic” message loud and clear, it’s often easier said than done.
At the end of April, when President Trump began to introduce a series tariffs on countries across the globe, global news outlets deluged readers with a host of scary headlines and stock markets reacted negatively.
This isn’t the first time we’ve seen such market turbulence, and it won’t be the last.
In fact, many experts predict that we’re likely to experience greater volatility throughout 2025.
Read on to discover four useful ways a financial planner could help you – and your clients –remain calm and continue progressing towards your goals during periods of uncertainty.
1. Giving context to scaremonger headlines
Periods of stock market volatility can spook investors.
And yet, journalists love nothing more than a scary headline and falling stock markets offer plenty of opportunities for financial pundits to capitalise by attracting more readers to click and read their stories.
As hard as it might be, the most successful investors tune out the noise and stick to well-understood investing principles.
Unlike reactive headlines, a well-constructed investment portfolio, carefully devised by an expert financial planner, is built on logic, evidence, and a thoughtful long-term strategy.
Your financial planner will understand all the elements in play and know how they relate to you and your own investment portfolio. They will be able to explain what the news stories don’t tell you, helping you to avoid taking knee-jerk reactions that could harm your long-term financial health.
2. Acting as an impartial sounding board
An investment portfolio isn’t just a spreadsheet of stocks and figures – there’s often a lot of emotion tied up in there too. You may fear that you won’t be able to fund your retirement, or won’t have enough to leave a financial legacy to your family.
As such, your emotions could be a disadvantage when it comes to making financial decisions.
When you work with a trusted financial planner, you’ll always have someone to turn to when you don’t understand something or aren’t sure what the right choice for you is.
Because they are removed from the emotions of the situation, they’re well-placed to act as an impartial sounding board and provide reassurance when it’s needed most.
3. Reminding you of your long-term goals
Before investing, as with many professional planners, we’ll spend time talking to you about your dreams and aspirations. This will help you to define and set long-term financial goals.
Placing your future ambitions at the centre of your financial plan and investment strategy can focus your mind, and provide a clear target.
During periods of market volatility, having someone who understands your long-term goals could provide calm reassurance.
When markets fall, some investors may attempt to time the market by moving to cash and then looking for the perfect moment to reinvest. Yet, in our experience, those who try this are more likely to experience lower returns in the long term than those who stay invested.
Keeping your long-term goals front of mind when markets are volatile can help you maintain your nerve.
4. Ensuring you’re on track to meet your financial goals
Regular progression meetings allow us time to catch up with clients and understand any changes to circumstances or goals. So, we can ensure that plans and investments remain suitable.
An open conversation means we can work together to keep you on track and achieve financial freedom.
Ultimately, we’ll work with you – and your clients – throughout, monitoring life’s changes and ensuring advice remains relevant to you so you can stay on track to reach your financial objectives.
Get in touch
If you or your clients are worried about stock market volatility and the potential effect on your investments, we’re here to provide invaluable reassurance.
To find out more about all the ways we can provide you with financial peace of mind, email mail@delaunaywealth.com or call us on 0345 505 3500.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Production