In today’s fast-paced world, it often feels like a constant flood of events makes us question the stability of our investments. The ongoing War in Israel, rising interest rates, and other global issues can send shockwaves through financial markets, leading to anxiety and the temptation to withdraw from investments. However, it is crucial to remember that “noisy” times are not exclusive to the present – history is well stocked with examples of chaotic periods that have tested us.
Take, for instance, the year 2020, when the COVID-19 pandemic swept across the globe, bringing entire nations to a standstill. As we hunkered down in our homes, unable to visit loved ones, everyday essentials like toilet paper became sought-after commodities. The world seemed to be spinning out of control. Looking back further, one cannot forget the harrowing events of September 11, 2001, when the devastating 9/11 attacks sent shockwaves around the world. These are just a few instances of the world’s continuous disturbance.
We’ve consistently conveyed a message to our clients: “Tune out the noise.” The world has always been, and will always be, a place of unpredictability. What we can control is our response to it. Staying true to your investment strategy, especially during troubled times, is fundamental to long-term success.
Consider this through the lens of history. Over time, markets have weathered various crises and emerged stronger. The Great Recession, the dot-com bubble, and countless other events have tested the strength of investors. Yet, those who maintained a steady hand and adhered to their investment plans ultimately reaped the rewards.
There will always be challenging and unexpected events in today’s global landscape. However, we can maximize our long-term returns by focusing on the elements within our control, such as staying committed to a well-thought-out investment plan. Instead of being swayed by the latest headlines, we must recognize that the world’s “craziness” is a constant, and our investment decisions should be grounded in a firm understanding of this historical perspective.