With the Middle East conflict rattling global markets, Consult by Momentum CEO Johan Minnie explains why staying calm, staying invested and diversifying smartly is still your best strategy right now
You probably got a fright when you opened your investment portfolio the last few weeks. We all did.
Global volatility always wreaks havoc on carefully laid plans, but a knee-jerk reaction is the very last thing your money needs right now. Even if the numbers look scary and your instinct tells you to stem the bleeding, sometimes the best action is no action: stay the course and let the market correct itself, like we’ve seen it do, time after time.
The turbulence we’re seeing right now is linked to the ongoing conflict in the Middle East. When the hostilities began, many assumed it would be over soon and the markets would stabilise. Fast forward several months, and there is still no clear resolution in sight. And that uncertainty is now filtering through global markets: oil prices have come under pressure, inflation risks have re-entered the conversation, and investors are increasingly uncertain about where interest rates may go next. That combination tends to drive volatility fast.
But remember: volatility is not the same as loss. And understanding that difference is the first step to making good decisions right now.
