Almost exactly a year ago we discussed managing emotions when markets are in turmoil. The source of the turmoil is different in nature but the effect for some is similar. Many have become uncertainty about the capital you have put aside in pensions and other investments and what it means for your future financial life.
In the past week, this happened in the London stock market, the FTSE 100, and the Eurostoxx 50:
This looks ugly you would say. But when we zoom out to one year including the drop we experienced in April 2025 there is a different picture:
So, the stock markets not only survived a big drop in April 2025 but showed a healthy growth even including last weekend. When we zoom out even further the compounded growth rate of stock markets is truly convincing.
The key takeaway? Market dips are as normal as birthdays—and just as inevitable. While logic tells us to stay the course, emotions can sometimes get the better of us. If you ever find yourself questioning your investment strategy, we are here to offer guidance and reassurance. Give us a call; we are happy to help you zoom out.