In this segment, we talked about the escalating conflict involving the US, and what that means for your super or investment portfolio.
Whenever there’s geopolitical instability — especially involving major global powers — markets tend to react. We covered:
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Why markets don’t like uncertainty – Wars create unknowns around energy prices, global trade, and economic growth, all of which can affect share markets.
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The importance of not reacting emotionally – Making changes to your portfolio during heightened fear can lock in losses or cause you to miss the rebound.
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What to do instead – This is the time to review your long-term strategy. Are you comfortable with your level of risk? Is your portfolio diversified? Are you investing with a clear plan?
Most importantly, we stressed that if world events have you feeling uneasy, speak with your adviser. Reacting out of fear is rarely the best strategy — but reviewing your plan to make sure it still fits your goals is always wise.
