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STAYING FOCUSED WHEN MARKETS FEEL UNSETTLED

By Orrin Shaw

Periods of market volatility can feel uncomfortable. Headlines are often loud, emotions can run high, and it’s natural to question whether you should be doing something. But times like these are exactly why your investment strategy and portfolio were carefully designed in the first place.

Market uncertainty is likely to remain a feature of 2026, driven by changing interest rates, geopolitical tensions, and uneven global economic growth. Importantly, volatility is not unusual or unexpected; rather, it’s a normal part of investing that requires discipline, not reaction.

Volatility Is Normal, and Temporary

Markets rarely move in straight lines. Short-term swings are often caused by news, speculation, or investor emotion rather than changes in long-term fundamentals. Sharp market pullbacks have historically been followed by recoveries, and investors who exited during periods of stress often missed subsequent gains.

While no one can predict exactly what markets will do next, history consistently shows that staying invested is more effective than trying to time the market. Those who remain invested benefit fully from the upswing, while those who exit the market may be left on the sidelines, missing critical gains.

Why Your Portfolio Was Built the Way It Was

Investment portfolios aren’t designed for what might happen this month or even this year. It is structured around:

  • Long-term goals
  • Investment time horizon
  • Risk tolerance for ups and downs
  • The need to balance growth, income, and protection

Diversification is a key part of this. By spreading investments across different asset classes, regions, and strategies, portfolios are built to help cushion volatility rather than avoid it altogether. Diversified portfolio structures are particularly important during periods of elevated uncertainty, as different asset classes respond differently to changing economic conditions.

The Risk of Reacting Emotionally

One of the biggest threats to long-term returns isn’t market downturns themselves, it’s emotional decision-making. Volatility can often trigger behavioural traps such as selling after markets fall or chasing what’s recently performed well. These reactions can lock in losses and reduce long-term outcomes.

Your investment plan is specifically designed to help you avoid these traps by keeping decisions grounded in strategy, not headlines.

While we can’t control market movements, we can control:

  • Staying aligned with long-term objectives
  • Maintaining diversification
  • Rebalancing when appropriate
  • Avoiding unnecessary changes driven by fear or noise

Successful investors focus on preparation rather than prediction — ensuring portfolios are resilient across a range of possible outcomes rather than positioning for a single forecast.

The Big Picture

Volatility can be unsettling, but it is not a sign that your strategy is failing, it’s evidence that markets are doing what they’ve always done. Your portfolio exists to weather these periods so that over time, it can continue working toward your long-term goals.

If your circumstances, goals, or tolerance for risk have changed, that’s an appropriate time to review your strategy. But reacting to market moves alone rarely improves outcomes.

As always, if you have questions or would like to talk through how your portfolio is tracking against your goals, we’re here to help.

Orrin Shaw
Associate Financial Planner
Authorised Representative No. 1292777

If you have any questions or comments, please email me at orrin@gfmwealth.com.au

Disclaimer: This document is not an offer or invitation to any person to buy or sell any interest in or deposit funds with any institution.  The information here is of a generic nature, and does not take into account your investment objectives or financial needs.  No person should act upon this information without firstly seeking competent, professional advice specifically relating to their own particular situation.

Copyright: © This publication is copyright. Subject to the conditions prescribed under the Copyright Act, no part of it may, in any form, or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced or transmitted without permission. Enquiries should be addressed to GFM Wealth Advisory.

GFM Wealth Advisory