Stock markets this month, 10th April 2025
It is understandable that the recent volatility in the stock markets, witnessed particularly in the last few weeks, may have caused concern for some. I am writing to you to remind investors that such fluctuations are normal and part and parcel in investing and, while unsettling, they are factored into the comprehensive financial planning process we undertake.
Over the past couple of weeks, global stock markets have experienced higher levels of volatility due to escalating trade tensions. President Donald Trump announced sweeping tariffs on goods from around the world. It is, unfortunately, not possible to forecast what tariffs will come into place, let alone know the impact it will have on stock markets without the benefit of hindsight, reading the tea leaves, or polished crystal balls!
The news and investing behaviour are two separate things. Good or bad news should not lead to portfolio activity. Sensationalist headlines such as ‘Global markets in meltdown’ (The Times, April 4th) cause unnecessary discomfort for investors. The easiest way to feel calmer about stock markets is to put down the newspaper, and go for a walk!
‘In investing, activity is almost always in surplus.’
Charles Ellis, author and investing sage
The figure below demonstrates that market declines are frequent, but the trend of stock market growth is clear. Volatility is the price of admission. The orange area represents the size of the fall from the previous peak (right hand axis), and the grey line the growth in £1 (left hand axis).
Figure 1: Putting market falls into context. Source: Albion Strategic Consulting. Vanguard Glb Stk Idx $ Acc. Data in USD from 05/08/1998 to 08/04/2025. Daily returns.
It is perfectly natural to feel concerned during times of market instability. If you have not been looking at or worrying about stock markets or your portfolio value, you are doing the right thing.
Rest assured, we are closely monitoring the situation, though don’t expect to see any action in your portfolio as a result. We are here to provide support or chat if you need us. Our goal is to ensure that your financial plan remains sound. Current stock market fluctuations sit well within expectations.
If you have any concerns or need any support, please do not hesitate to reach out.
