Staying the course when volatility increases
Despite a slight rise in volatility this month, markets have remained impressively resilient following a strong run since April.
Travis Murdoch noted that after months of solid gains, it would be natural to see some pullbacks.
“Even in a healthy bull market, the odd correction is perfectly normal,” he said.
Encouragingly, the start of the US third-quarter earnings season has been strong, with major banks reporting robust results and upbeat outlooks for the consumer and economy.
That positive tone, Travis added, “should be a tailwind for equity markets as we move through the rest of the year.”
The importance of staying the course
James Paterson highlighted that after six months of strong performance, it’s understandable that some investors are starting to worry about a potential pullback. But he stressed that short-term volatility is a normal part of long-term investing.
“Understanding that markets go up and down is one of the most important aspects of being a successful investor,” he said. “Those who try to time the market often miss out on returns, while those who stay invested tend to do better over the long run.”
Sam de Court cited legendary investor Howard Marks, who famously said:
“Your ultimate success or failure as an investor will depend on your ability to ignore the worries of the world long enough to allow your investments to succeed.”
When to review your portfolio
While reacting emotionally to market moves rarely pays off, James encouraged investors to review their portfolios during good times rather than bad. “After such a strong run, now is a great time to check that your portfolio still aligns with your goals and risk profile,” he said.
Looking ahead: positive tailwinds for 2026
Travis remains constructive on the outlook. “Earnings growth is strong, the global CapEx boom continues, and the Fed is still cutting rates into a healthy economy,” he said. “We see plenty of tailwinds for equity markets heading into 2026.”
If you have any questions, please feel free to reach out to the team.
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