It is hard to remember a time when there has been so much speculation on geopolitical and global economic events. This creates trepidation about what may happen next.
Hardworking people with growing portfolios are growing increasingly concerned about Government-driven changes to their pension funds, inheritance tax, income tax levels, planning for long-term care and how this will all impact their investments and savings.
This is then being catastrophised by the news media, which is leading people to make knee-jerk reactions while not having a full understanding of the potential implications of their actions.
Fear of losing everything or desire for a quick win can cloud even the sharpest minds. Behavioural experts often point out that humans are wired to react strongly to threats, whether it’s a sabre-toothed tiger or a stock market dip.
The problem is these knee-jerk reactions rarely serve us well in the modern financial world. Selling off investments during a dip or chasing a ‘hot tip’ from the news often leads to regret. Recognising these emotional triggers is the first step to overcoming them.
While we recognise that global, and national, events do matter – what is all too easy to forget in 2025 is that the jeopardy and noisiness of the world’s problems are greatly amplified by the technology at our fingertips.
From social media to live news phone notifications – it is possible to be completely overwhelmed by information, 24 hours a day, seven days a week.
But (and shout it from the rooftops if needs be) it is essential not to make rushed, panicked decisions based on hearsay, conjecture and short-term events. Advice should always be sought before making any decisions.
There is an extraordinary amount of noise – from social media to the TV, newspapers to the pub. All of these can affect our decision-making and capacity to remain calm. This is especially difficult to overcome when finances are at stake.
Keep this in mind: no matter what is happening out there, your personal situation is your own, not anyone else’s. You need to make decisions based on a cool, calculated assessment of what is in your best interests – today and into the future.
Consider the pros and cons and all of the options available before making any decisions.
Key tips
So how can we go about making more measured decisions and plans? Finli has some core rules of thumb to stick with:
- Work with your financial planner alongside your accountant and solicitor to build a long-term financial plan that you understand and are comfortable with.
- Be flexible and recognise that life happens and change is inevitable. Putting in place a professional long-term financial plan will give you the peace of mind that you have that has these scenarios and issues prepared for and managed.
- Focus on the long-term and not day-to-day events.
- The person at dinner, down the pub, the taxi driver – or even in the press – doesn’t necessarily know more than you. A little knowledge can be very dangerous. If you’re unsure, seek professional advice. That is what it is there for.
See the wood through the trees
In the last five years, we have seen a global pandemic, regional wars, chopping and changing of Government and Prime Ministers and disruptive politics around the world.
But many of our clients have seen positive returns on their investments. This, in short, is how you can see the wood through the trees.
In fact, the UK stock market FTSE 100 has reached record highs as has the S&P 500 in the last 12 months.
The real truth here is that geopolitical, economic and other major world events have always happened. There has never not been a time in the world when everything was relaxed, and nothing bad was happening.
Uncertainty isn’t new. The 2008 financial crisis sent markets tumbling, yet those who held steady often recovered, and then some. Go back further: the dotcom bubble bursting, the 1970s oil shocks, even the Great Depression.
Each time, panic sellers lost out, while patient investors rode the wave. History doesn’t repeat itself exactly, but it rhymes. The lesson? Markets endure, and so can your finances. If you don’t let short-term fear dictate your moves.
Investment markets and core personal financial plans have to adapt to – and frequently ignore – these events. But the longevity of a specific long-term plan is far more powerful than any short-term decision you might make in haste.
Geopolitical, economic, and other major world events have always happened and always will. What matters is how you respond.
Tune out the noise, trust your plan, and lean on professional help when in doubt. Take a deep breath, step back, and focus on what you can control. Your financial future isn’t a gamble on a short sprint; it’s a marathon – and you’re building to finish strong.
