Navigating Market Volatility: A Long-Term Investment Perspective

Written by Communications at MASECO

Over the past couple of weeks, global stock markets have experienced higher levels of volatility due to escalating trade tensions. President Donald Trump announced sweeping tariffs on goods from around the world. It is, unfortunately, not possible to forecast what tariffs will come into place, let alone know the impact it will have on stock markets without the benefit of hindsight, reading the tea leaves, or polished crystal balls!

The news and investing behaviour are two separate things. Good or bad news should not lead to portfolio activity. Sensationalist headlines such as ‘Global markets in meltdown’ (The Times, April 4^th) cause unnecessary discomfort for investors. The easiest way to feel calmer about stock markets is to put down the newspaper, and go for a walk!

‘In investing, activity is almost always in surplus.’ – Charles Ellis, author and investing sage

The figure below demonstrates that market declines are frequent, but the trend of stock market growth is clear. Volatility is the price of admission. The orange area represents the size of the fall from the previous peak (right hand axis), and the grey line the growth in £1 (left hand axis).

Figure 1: Putting market falls into context

Source: Albion Strategic Consulting. Vanguard Glb Stk Idx $ Acc. Data in USD from 05/08/1998 to 08/04/2025. Daily returns.

It is perfectly natural to feel concerned during times of market instability. If you have not been looking at or worrying about stock markets or your portfolio value, you are doing the right thing.

Rest assured, we are closely monitoring the situation, though don’t expect to see any action in your portfolio as a result. We are here to provide support or chat if you need us. Our goal is to ensure that your financial plan remains sound. If you have any concerns or need any support, please do not hesitate to reach out.

Important notes

This is a purely educational document to discuss some general investment related issues. It does not in any way constitute investment advice or arranging investments. It is for information purposes only; any information contained within them is the opinion of the authors, which can change without notice. Past financial performance is no guarantee of future results.

Products referred to in this document

Where specific products are referred to in this document, it is solely to provide educational insight into the topic being discussed. Any analysis undertaken does not represent due diligence on or recommendation of any product under any circumstances and should not be construed as such.

The Legal Stuff

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• This document is provided for information purposes only and is not intended to be relied upon as a forecast, research or investment advice.
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Risk Warnings:

• All investments involve risk and may lose value.  The value of your investment can go down depending upon market conditions and you may not get back the original amount invested.
• Your capital is always at risk.
• Fluctuation in currency exchange rates may cause the value of an investment and/or a portfolio to go up or down.

Performance:

• Past performance is not a reliable indicator of future results.
• No assurance or guarantee can be given that any target return will be achieved.

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