Navigating uncertain markets: Seven principles for smarter investing

Global stock markets have been experiencing turbulence recently, sparked by new tariffs introduced by the US. It’s a time of uncertainty that may leave you feeling unsettled.

However, at Quilter we have a long and successful history of guiding our customers through all kinds of markets.

Our Chief Investment Officer, Marcus Brookes, thinks it’s natural to feel concerned during these periods of market stress. “Panic can quickly take hold, and it’s completely normal to worry about what’s happening to your investment. But history shows us that markets have always risen and fallen, and they’ve bounced back from crises far worse than this one.”

Staying invested and thinking long-term is the best way to preserve - and grow - your wealth. Look for opportunities in challenging markets while keeping sight of your financial goals.

Here are seven essential principles to guide your investment strategy during turbulent times:

1. Seek professional advice

Investing isn’t a one-size-fits-all activity. Everyone’s financial needs and tolerance for risk are unique, which is why it’s crucial to have a tailored plan. A financial adviser can help you create one, while also providing calm and reasoned advice in more stressful times. Their expertise can help take the emotion out of investing, ensuring your portfolio remains balanced and aligned with your objectives. A good adviser could well be one of the best investments you ever make.

2. Have a plan - and stick to it

Setting a financial goal is one thing, but a well-thought-out plan is what turns dreams into reality. Ask yourself: What is my money for? When will I need it? And how do I achieve my targets? A clear plan allows you to focus on your long-term goals, avoiding distractions from short-term market fluctuations. Be realistic about your aims and avoid overambition, which could derail your progress.

4. Avoid sticking solely to cash

When markets get shaky, it can be tempting to play it safe by moving everything into cash savings. While this might feel like a secure option, inflation can silently erode the value of your money over time. For instance, with just a modest 3% inflation rate, £10,000 today could lose nearly half its purchasing power within 25 years. Equities, while riskier, could offer better protection against inflation in the long run.

5. Diversify your portfolio

Don’t put all your eggs in one basket. By spreading your investments across different types of assets – like shares and bonds – you reduce the risk of one poor performer dragging down your entire portfolio. Diversification helps smooth out the highs and lows, giving you more stability during times of market stress.

6. Think long term

Timing the market – buying low and selling high – sounds like the dream, but it’s nearly impossible to do consistently. Instead, focus on staying invested for the long term. By using dips as buying opportunities or investing steadily over time, you can ride out the fluctuations and potentially achieve stronger returns.

7. Stay the course

In the face of volatility, it’s easy to panic and pull out of the market. But missing just a few of the best-performing days could significantly impact your returns. History has shown that market recoveries often follow downturns, so the key is to have a plan, stick to it, and remain invested.

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

The performance figures shown refer to past performance. Past performance is not a reliable indicator of future performance.