Positioning your portfolio amid market uncertainty

Recent months have brought a wave of geopolitical tension, ongoing conflicts, tariff threats, and widespread economic uncertainty. Against this backdrop, it is understandable that many investors are questioning how best to position their portfolios to weather current market conditions.

Through our ongoing discussions with clients, we have identified several core principles that can help investors navigate volatile markets with greater confidence and clarity.

Stay the course

In periods of heightened volatility, markets often react sharply to new information, frequently exacerbated by sensationalised media coverage. This environment can trigger emotional decision-making, causing investors to lose sight of their long-term strategies.

Remaining disciplined is key. Your investment strategy should reflect your individual risk tolerance and “volatility budget” - your ability to endure fluctuations without compromising your financial well-being.

If recent market movements have caused discomfort, consider revisiting your risk profile to ensure your portfolio still aligns with your goals, time horizon, and capacity for risk.

Avoid timing the market

Attempting to predict short-term market highs and lows is extremely difficult - even for professionals. Reacting to volatility often results in suboptimal outcomes - with many investors selling after markets have declined, and missing subsequent recoveries.
For example, despite a turbulent global environment, recent performance in indices such as the MSCI World has shown surprising resilience. Investors who remained invested were better positioned than those who reacted emotionally. Staying the course, with a disciplined approach, tends to yield better long-term results than attempting to time the market based on incomplete or evolving information.

See volatility as opportunity

While volatility can be unsettling, it often presents opportunities.

Market dislocations may offer attractive entry points for fundamentally strong investments trading at temporarily depressed prices.

Rather than trying to "catch the bottom", a measured approach - such as dollar-cost averaging - can help you take advantage of lower valuations while managing risk. This strategy allows you to stay focused on your long-term objectives and benefit from eventual market recoveries.

Historically, investors who remained calm and committed during market downturns have achieved better long-term results.

Prioritise diversification

Diversification remains one of the most effective tools for managing investment risk. By spreading your portfolio across asset classes, sectors, and geographies, you can reduce exposure to any single market event or economic shock.

Different asset classes behave differently in various economic conditions. While equities may fall during a downturn, fixed income or alternative assets might hold steady, or even appreciate. A well-diversified portfolio not only helps mitigate losses but also positions you to capture gains as different segments recover at different rates.

Maintain adequate liquidity

Liquidity is crucial in uncertain markets. Having access to cash or easily liquidated assets ensures that you can meet unexpected expenses without having to sell long-term investments at inopportune times.

Liquidity provides a financial cushion, enabling you to stay committed to your long-term strategy even during short-term disruptions. This flexibility can reduce stress and allow you to make thoughtful, rather than reactive, decisions.

Regularly review your portfolio

Periodic reviews of your investment portfolio are especially important during volatile times. Economic conditions evolve, and your portfolio should adapt accordingly. A review ensures your asset allocation continues to reflect your current goals, risk tolerance, and market outlook.

Regular assessments also help identify underperforming investments, uncover new opportunities, and make necessary adjustments to keep your strategy on track. Staying engaged with your portfolio helps maintain focus and discipline, reducing the likelihood of emotionally driven decisions.

Work with a trusted adviser

Navigating uncertainty is easier with a knowledgeable adviser by your side. An adviser provides clarity, structure, and objectivity when markets are noisy and emotions run high. They help you filter out distractions, focus on long-term goals, and stick to a thoughtful investment plan.

Beyond providing recommendations, a good adviser serves as a strategic partner - helping you make informed decisions, maintain perspective, and preserve your financial well-being through all market cycles.