Headlines about world events are often coupled with stark warnings about market volatility, which can understandably make investors feel nervous.

However, history has taught us, time and time again, that remaining calm and staying invested is often the best course of action.

Here’s how to keep a clear head in the wake of a media storm, and what we can learn from previous periods of market volatility.

Avoid the temptation to cash in your investments by keeping calm and carrying on, even in the face of market disruption

President Trump’s trade tariffs, the war in Ukraine, and now further events in the Middle East have dominated the headlines over the past year.

Stories about global conflict can make for difficult reading, especially when there are threats to civilian lives involved.

On a personal level, it can also be disconcerting to read about market volatility, falling share prices, and investor losses. This can often lead to a kneejerk reaction, and it can be tempting to cash out, especially if it looks as if you’re losing money.

Here are three key things to bear in mind when the headlines are full of negative news.

1. Learn a lesson from the history books

Market volatility and crashes are nothing new. In fact, they’re pretty much par for the course. If we look back at some of the most severe global financial shocks, we can chart their course and see that the markets eventually steadied again.

According to Morningstar:

• In 1929, the markets fell by 79%, and prices dropped to an all-time low (trough) in 1932, before recovering four years later in 1936
• Black Monday in October 1987 saw the markets fall by 30.2%, reaching a low in November 1987 and recovering in 1989
• As the Covid-19 pandemic took hold, the markets declined by 19.6%, falling to their trough in March 2020 and recovering relatively quickly in July 2020
• Market crashes are relatively frequent, occurring around once a decade.

The takeaway from this is that the market typically recovers, even under the worst of circumstances. While it’s impossible to predict how long the period of volatility will last, history tells us that there is likely to be a recovery.

Cashing out means you lock in any losses and don’t benefit from the recovery. Additionally, holding too much in cash can mean the real-world value of your wealth declines due to inflation.

Meanwhile staying invested and waiting for more peaceful, productive times could mean you continue generating growth in the future once markets recover.

There is a saying that “time in the market beats timing the market”, which is worth remembering if you’re feeling overwhelmed by media noise.

2. Avoid checking your portfolio too often

Checking the news is very easy today, with apps, websites, and rolling news channels all giving us constant updates.

While there’s nothing wrong with staying abreast of what’s happening, constantly checking how your investments are performing could lead you to panic and cash out during times of volatility.

Daily monitoring isn’t necessary, as it could make it harder to take a rational decision if you see negative headlines or market behaviour.

If you have a well-diversified portfolio of investments and attend regular reviews with your financial planner, then checking every quarter is plenty.

Talk to us about how we can help you create a balanced portfolio and develop an investment strategy that aligns with your long-term goals and tolerance for risk.

3. Think about your long-term goals

Generally, your investments are designed to support your long-term financial plan, which is in place to help you achieve your goals in later life as well as the here and now.

This means that you’re likely to need to stay in the market long term to realise the maximum potential for your wealth.

Most investments will have to ride the storms of volatility at some point, often more than once.

Selling investments at the first sign of trouble doesn’t give them the chance to bounce back and continue growing in the future. This could end up leaving you less able to achieve your goals later in life.

However, if you shut out the media noise and remain invested during periods of volatility, you may be more likely to achieve your long-term goals.

Get in touch

If you’d like to talk to us about creating a well-diversified portfolio, or any other aspect of investing, we’ll be happy to help. Please email us at info@servoprivatewealth.com or call 01444 715200 to find out more.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Any links will direct to a third-party website and Servo Private Wealth is not responsible for the accuracy of the information or content contained within linked sites. Approved by Best Practice IFA Group Limited on 12/03/2026.