Investment lessons learnt during stock market volatility
May 1, 2025
The discussion revolves around navigating recent stock market volatility driven by political tensions. Lessons focus on the importance of diversification, highlighting how mixed investment portfolios perform better during downturns. The conversation emphasizes maintaining a long-term strategy, balancing risk and reward, and understanding personal risk tolerance. Insights from a recent Q&A webinar add depth, addressing investor concerns and encouraging disciplined approaches amidst uncertainty. Historical recovery patterns of markets are also examined, underscoring resilience for patient investors.
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volunteer_activism ADVICE
Avoid Panic Selling
Keep a cool head and avoid panic selling during volatile markets.
Losses are only realized when you sell; hold on for potential recovery.
insights INSIGHT
Investment Stage Matters
Market downturn impact depends on your investment stage: saving or income phase.
Falling markets can be opportunities for accumulators but threats if withdrawing income soon.
volunteer_activism ADVICE
Use Pound Cost Averaging
Use regular investment plans to smooth out market dips and rises via pound cost averaging.
This strategy helps avoid investing lump sums just before market downturns.
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Stock markets have experienced an uptick in volatility over the past couple of months amid uncertainty over US President Donald Trump’s tariff policies. In this episode, Kyle is joined by Craig Rickman to discuss the lessons investors can learn from the stock market sell-off. Kyle also crunches the numbers to see how different types of funds have fared since stock markets started their descent, with the data showing the power of diversification.
The episode mentions a recent webinar that took place in which interactive investor experts answered questions from customers regarding the sell-off. For those who missed it, you can watch the webinar here: Investing through the storm: Q&A with ii experts on market volatility
Kyle is funds and investment education editor at ii, and Craig is ii’s personal finance editor.
Investing through the storm: Q&A with ii experts on market volatility
interactive investor experts answer your questions on how to invest with confidence amid the noise.
On The Money is an interactive investor (ii) podcast. For more investment news and ideas, visit www.ii.co.uk/stock-market-news.
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