We’re now contending with factors like the Trump tariffs, which have disrupted global trade and created volatility in financial markets. These tariffs, intended to protect American jobs and industries, have sparked a trade war with countries like China, leading to price hikes, supply chain issues, and shifting market dynamics.
In the last several years, we have also witnessed a global pandemic shake up economies, a sharp rise in inflation, aggressive interest rate hikes from central banks, and ongoing geopolitical tensions - including the war in Ukraine.
During periods of market volatility, investors who remain focused on their long-term goals tend to outperform those who trade in a panic. In times of uncertainty, it’s the steady approach that proves most effective, rather than chasing trends or making hasty decisions. History suggests that women excel at this.
FSC Insights & Trends: Women and Finance in New Zealand highlights that women are more likely to focus on financial stability and long-term goals, a strategy that’s particularly beneficial when faced with unpredictable markets. This disciplined mindset often leads to better investment outcomes, as it minimises impulsive decisions and reduces the risk of over-trading during periods of market volatility.
If you’re feeling uncertain, there are resources and strategies to help you make informed decisions. Sorted.org.nz and Money and You, FSC's website sharing money tips and stories, is an excellent resource that offers tools and advice to help you stay on track with your financial goals.
You could also look at strategies such as dollar-cost averaging to mitigate the impact of volatility or diversifying investments across different assets, sectors, and regions. Additionally, working with a qualified financial adviser can ensure that your strategy aligns with your long-term objectives and help you review your investments regularly without reacting to market volatility.
Successful investing is about sticking to your plan despite unpredictable market movements, maintaining focus on your objectives, and trusting that consistent investing pays off.