Navigating market turbulence with a long-term mindset

The ongoing US-Israel war with Iran has added to global uncertainty and contributed to turbulence in financial markets. One way to navigate this challenging situation is to stay calm, avoid panic and reflect on past periods of market turmoil for useful lessons.

Given the heightened geopolitical tensions and uncertainty we’re seeing at the moment, it is understandable that markets are experiencing increased turbulence. Periods like these can feel unsettling but reacting quickly or emotionally – whether by panic-selling or panic-buying, for that matter – rarely leads to good long‑term outcomes for investments, as with anything else.

While it may feel uncomfortable at times, sticking to your long-term financial plan is often more effective than making sudden changes. Markets have been through many periods of uncertainty before – including, more recently, the war in Ukraine and the COVID-19 pandemic – and while short-term market ups and downs may feel worrying, they are normal. Long-term investors have typically benefited from staying disciplined rather than reacting to every market fluctuation.

As always, M&G’s fund managers remain focused on long‑term objectives. By filtering out short‑term market noise and concentrating on fundamentals, they look to actively manage risk and make the most of opportunities that can arise during more volatile market conditions.

This conflict may be different, but the principles for navigating turbulent markets remain the same. Diversifying your investments across different types of assets can help strengthen and insulate your portfolio. And although the outlook feels uncertain right now, history shows that markets have often shown resilience over the long term – even through major global events.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed in this article should not be taken as a recommendation, advice or forecast. Past performance is not a guide to future performance. Diversification does not protect against losses.