Recent Market Volatility

MARCH 2026

Periods of volatile markets can feel unsettling, especially when the news headlines are shouting loudly.

At times like these, it is important for investors to remind themselves of some important principles to avoid the risk of making decisions that could lead to poor – perhaps disastrous – outcomes.

Avoid trying to time when to be in or out of markets 

Research suggests that few investors, whether professional or otherwise, possess any ability to successfully time when to be in or out of markets. The risk of trying to do so can be extremely costly.

 Source: FactSet/7IM. Past performance is not a guide to the future.

• The FTSE 100 has had an annualised return of 6.7% over the past 20 years. £10,000 would have turned into £39,000.

• Miss the best FIVE days, and that turns into a 4.7% annualised return. 2% less PER year – which means £10,000 would have become £26,000.

• Miss the best 30 days (one month out of twenty years) and you lose money! £10,000 becomes £9,000

The big thing that the chart doesn’t show is that most of the time, the big positive days come hot on the heels of the bad days. Just when you’re feeling most scared is when things are likely to turn around. 

• 30 of the BEST 40 days come within two weeks of one of the worst 40 days!

• 10 of the 40 BEST days come the DAY AFTER one of the worst 40 days!

The people who’ve sold aren’t going to be the ones buying back the next day (their brains won’t let them). They’re GIVING their long term returns to someone else – The Stock market is a "device for transferring money from the impatient to the patient" –Warren Buffet.

Sell in haste, repent at leisure … much better not to sell in the first place.

This article was prepared by Chris Green, our Head of Financial Planning.