If you’re investing in assets such as shares, you might see their value move around from time to time.

These market fluctuations are a normal part of investing. Here are a few things worth keeping in mind about market volatility, and how to navigate it.

Market movements are normal

Market ups and downs are a natural part of investing. Volatility is the price you pay for market returns and it has always been part of the investment cycle.

Morningstar research indicates there were 19 market crashes in the United States between 1871 and January 2025. Some corrections were small, with markets bouncing back within a few days, while others were more significant and took years to return to their previous peak.

However, as the Morningstar data shows, investment values have tended to increase over the long-term, despite those periods of decline.

Short-term movements matter less than the long-term trend

When you see the value of your investments drop sharply, as we did in March 2020 when Covid really made its presence felt, it can be very uncomfortable. As an investor, it helps to keep things in perspective and remember the broader context of your investment.

Your investments should be aligned to your risk profile. Particularly, how long you have until you need to use the money.

If you have many years until you need to access your invested funds, you will likely have time to ride out market movements. While you’ll see your investment value fall, you’ll also usually see it recover.

Keep your emotions in check

It’s easy for emotions to get the better of you when markets are turbulent. During the Covid downturn, many investors moved their money into more conservative investments, driven by fear.

Many did not move back, and missed out on the market recovery that followed.

If you move your investment to more conservative assets when the market has softened, it can mean you lock in losses that would otherwise exist only on paper.

It can also mean missing the rebound as markets may recover before people feel confident enough to act.

When emotions start to run high, it can help to revisit your investment strategy. Remind yourself why you’re investing the way you are, what you’re working towards, and what your long-term investment strategy is designed to do over time.

This is where having a SHARE adviser in your corner can make a real difference. We can help make sense of market volatility and ensure your strategy remains aligned to your current financial goals and needs.

Stay the course

Over the long-term, it’s generally time in the market rather than timing the market that delivers returns.

Markets naturally move up and down, and trying to predict those movements can lead to missed opportunities or costly mistakes. By staying consistent and disciplined in your investment strategy through different market cycles, you give your investment the chance to benefit from compounding returns and potential overall growth.

Having a clear plan, based on your goals and risk tolerance, and sticking to it can help you avoid emotional decisions when markets become volatile.

Want to chat?

If you’d like to know what you can expect of your investment portfolio, or how you can cope with volatility as it happens, get in touch with the team at SHARE. We’re investment specialists who can make sure your investments match your goals and help you stay on track to get there.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.