Having the courage to do nothing at all
- Rory Brazil
- 2 days ago
- 3 min read
“Doing nothing” is often perceived as the easy option. An actionless action, if you like. But for many people, doing nothing in terms of their finances and portfolio can be much easier said than done.
You might have read my headline and wondered why you’d need to be courageous to step aside.
And my answer is that media headlines can often be sensationalist, we have access to 24-hour news channels at our fingertips, and social media is a minefield of speculation and disinformation.
Recent global events including President Trump’s trade tariffs, as well as conflict in Ukraine and the Middle East, have seen consequent market volatility and tumbling share prices.
It can be very tempting, and understandably so, to cash in and move your wealth somewhere “safer”.
History shows us that market volatility, followed by recovery, is common
Reading about market volatility in isolation can be unsettling. But looking at stock markets over time, we can start to see patterns of behaviour. In the same way that a toddler can have a tantrum one minute and then be calm the next, volatility is actually to be expected.
In fact, global equities have experienced a 10% or more decline in 31 of the last 54 years. [1]
But market recovery can happen surprisingly quickly. The S&P 500 dropped by more than 12% between President Trump’s initial tariff announcements on 2 April 2025 and its low on 8 April. However, by 28 April the markets had recovered by almost 11%. [2]
A good mantra to remember is “Time in the market, not timing the market”. It’s very difficult to predict how and when markets will fall and recover, but standing steady means that you will still be invested when the recovery occurs.
You could miss out on growth
Cashing in your investments might seem like a good idea. But it’s important to remember the effects that inflation could have on your cash savings. Essentially, if inflation rates are higher than interest rates, then your purchasing power can be seriously eroded.
Plus, you could be missing out on strong returns when the market recovers. Again, we can look to history to tell us that investors would have lost out significantly by trying to time the markets.
In fact, over the 35 years from 1986, misjudged decisions to withdraw investments could potentially have cost around £33,000 in returns. [3]
This is where courage can be necessary. Sensationalist headlines and constant gloom could lead even the calmest of investors to panic. Try to avoid over-checking your investments and limit how often you read news articles or visit social media pages discussing market activity.
A “keep calm and carry on” approach is likely to serve you much better.
A strong portfolio can help you weather a storm
Effective financial planning means creating a portfolio of investments that offer you peace of mind during turbulent times.
Diversification is key, as spreading your investments across a range of asset classes, geographical locations, industries, and sectors can help to balance your overall risk.
Quality assets, like government bonds, are often lower-risk and can be more stable during times of volatility. Depending on your approach to risk, this can offer you some reassurance during market downturns.
You could also consider cash as part of your portfolio, even in small amounts. It’s highly liquid and easy to access, so might help you resist the temptation of selling investments if you need instant funds.
Regular reviews are an important part of your financial planning, as they can help make sure your portfolio is still working to meet your long-term goals and continues to align with your risk tolerance.
I’m here to help you look to the long term with your financial planning
From creating a portfolio to match your needs to offering regular reviews and investment management, I can help you stay calm during market chaos.
Email rory@brazilfinancial.ie or call + 353 86 824 7542.
Please note
This article is for information only. It does not constitute advice.
It describes financial planning services that Brazil Financial Planning can offer to you.
Brazil Financial Planning Ltd T/A Brazil Financial is regulated by the Central Bank of Ireland. Registered No. 477512.
Brazil Financial Planning is not a tax adviser and tax advisory services are not regulated by the Central Bank of Ireland.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
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