If you are waiting for a perfectly calm news cycle to put your money to work, you will be waiting forever. There is always a looming crisis ready to rattle our confidence. Whether it is the wars in Ukraine and Iran, the lingering economic sting of COVID, stubborn inflation, or dizzying market volatility, the world will always give you a reason to hit the panic button.
When you turn on the news, the sky always appears to be falling. It is incredibly easy to let these global events dictate financial decisions. However, the point I am trying to make is that you cannot let your emotional response to daily, weekly, or quarterly geopolitical movements derail your long-term financial plan.
In my experience guiding investment strategies, I have seen firsthand what happens when fear takes the wheel. Sitting on the sidelines, otherwise known as market timing, because you are worried about the current state of the world, is a guaranteed return killer. While parking your money in cash might provide an illusion of safety during turbulent times, it actually exposes you to inflation and causes you to miss out on inevitable market recoveries.
Do not let the current news cycle convince you to abandon a well-crafted strategy.
The reality is that uncertainty is a certainty. Markets have grown for decades during good times and bad, navigating through world wars, global pandemics, severe recessions, and periods of intense inflation. The global economy, and therefore the stock market, endures.
Prudent investors who stay in the market do just fine. They understand that volatility is simply the price of admission for long-term growth. Instead of trying to predict unpredictable world events, we focus on positioning portfolios to protect the downside while fully participating in the upside. By ensuring investments are properly diversified and aligned with a risk-appropriate strategy tailored to your unique goals, you can confidently weather these storms.
Do not let the current news cycle convince you to abandon a well-crafted strategy. Control what you can, stay invested, and let compound interest do the heavy lifting. The market consistently rewards patience, discipline, and those who refuse to sit on the sidelines.
Brice Carter, CFP, ChFC, CIMA, CAP, CDAA, MSFS, has served as a Financial Advisor and the Chief Investment Officer (CIO) at Financial Strategies Group (FSG) since 2011. He joined the family run, SEC-registered firm and today plays a central leadership role in shaping investment strategy, portfolio management, and long-term planning for a growing client base. FSG has offices in Okemos and Fenton.
