It’s been difficult to check the news lately without feeling a sense of rising pressure. Between the escalating tensions in Iran, which have seen oil prices swing violently as the Strait of Hormuz faces uncertainty, and the literal price at the pump jumping nearly 50 cents in a single week, the "global" suddenly feels very "local." It is no longer just something happening on television. You are feeling the reality of this in your wallet and in your investment statements.
When you add a creeping unemployment rate of 4.4% and the persistent sting of inflation on everyday essentials, it’s only natural to feel a sense of urgency. When the world feels volatile, our instinct is to protect ourselves. Often, in the world of investing, that instinct tells us to run. But before you make a move, let’s take a deep breath and look at the bigger picture.
Right now, you might see your portfolio dip and feel like your hard-earned money is disappearing. It’s important to remember that the stock market has always charged a "tax" for long-term growth, and that tax is paid in volatility. Market swings are the bumps in the road on a long cross-country journey. While the S&P 500 may be down roughly 1.5% year-to-date, history shows us that these geopolitical shocks, while frightening, are often met with a "rubber band" effect. Once the market processes the "new normal," it tends to snap back.
Controlling the Controllables
When global events feel out of your hands, the best way to lower your anxiety is to focus on what you can control:
Prioritize Your Safety Net: If you are worried about job losses, don't look at the stock market—look at your savings. Ensure you have 3–6 months of cash in an emergency fund. This cushion is what allows you to let your long-term investments ride out the storm.
Mute the Noise: Financial news is often designed to trigger adrenaline. If the headlines are making you lose sleep, turn off the push notifications. Checking your account once a month is a strategy; checking it once an hour is a recipe for stress.
Zoom Out: If you look at a 10-year chart of the market, the "crises" of five years ago look like tiny, insignificant blips. Your investment plan was built for decades, not for this week’s news cycle.
The headlines are loud, but your financial plan should be quiet. You didn't invest for "today"; you invested for a future that exists long after today's headlines have faded. The headlines are loud, but your financial plan should be quiet. You didn't invest for "today"; you invested for a future that exists long after today's headlines have faded.
The most powerful action you can take right now is to stay the course. But if the urge to "do something" is still overwhelming, please don't do it alone. Reach out, and let's talk about it together. We can revisit your plan and confirm it’s still the right one for you, allowing us to make decisions from a place of clarity and strategy, not fear. One thing I always remind clients about is remember your why. Go back to the plan. Typically, that is where you will find solace and perspective.