Navigating Market Volatility: A Practical Guide for Irish Investors
Markets are experiencing volatility. Your retirement savings may have taken a hit, and your ETF portfolio might not be performing as expected.
So, what should you do?
If you're stuck between making a move or staying put, you're not the only one. Markets have taken a turn, and many Irish investors are feeling uneasy. This is the point where decisions based on discipline, not emotion, will shape your future outcomes.
Here’s what we tell our clients:
How you respond now could matter more than almost anything else you do with your investments.
What’s Going On?
Lately, major indices like the S&P 500 and Nasdaq have experienced sharp declines, rattling investors worldwide.
Why? A new round of aggressive tariffs from the U.S. has triggered fears of a global trade war. Combined with rising inflation and ongoing recession concerns, this has shaken investor confidence.
For Irish investors, this matters more than you might think:
Most Irish pensions (e.g. Irish Life, Zurich, Aviva, PRSAs) are heavily invested in global equities.
When U.S. markets fall, your pension or ETF portfolio can drop significantly.
For an economy like Ireland’s — highly reliant on global trade — import costs could climb, adding to inflation pressures.
Common Mistakes to Avoid
❌ Panic Selling
Selling during a market drop locks in your losses, preventing your investment from recovering when the market rebounds. Temporary losses only become real if you sell in a downturn - it's like selling your house in a storm because the roof is leaking. Emotional decisions are rarely good financial ones.
❌ Chasing Bargains
A 20% drop in price doesn’t automatically make a stock a bargain. Falling prices don’t always equal value.
❌ Trying to Time the Market
Waiting for the "perfect moment" to invest is almost impossible. History shows that some of the strongest gains occur immediately after sharp declines. If you're not in the market, you miss those rebounds.
What Smart Investors Do Differently
✅ Stay Calm – Pause before acting. Give yourself a day or two to think clearly — are you sticking to your investment strategy, or letting fear drive the wheel?
✅ Avoid getting swept up in the headlines – Reduce panic-scrolling. Revisit your long-term financial goals instead.
✅ Review, Don’t Overhaul – Reassess your portfolio:
Are you overly concentrated in one sector (like tech or crypto)?
Are you diversified across regions and asset classes?
Do you have the right mix of equities, bonds, and cash?
✅ Align Strategy with Your Life Stage
Under 55? Keep contributing. Downturns are buying opportunities.
55+ or approaching retirement? Focus on capital preservation. Maintain 1–3 years of living expenses in safer assets.
Already retired? Avoid selling equities. Use low-risk assets for short-term withdrawals while allowing growth assets time to recover.
✅ Invest in Quality – Focus on businesses with strong fundamentals, global reach, and products people need regardless of the economic climate.
✅ Diversify – Across geographies, asset types, and industries. Don’t put all your eggs in one basket.
Keep Perspective
Market crashes feel alarming, but they’re not unusual.
Over the last century, markets have consistently rebounded.
The key is to:
Stay invested.
Stay diversified.
Stick to your strategy.
In Summary
✅ Market downturns are part of the cycle
✅ Don’t panic sell – stay the course
✅ Diversify to reduce risk
✅ Tweak your plan – don’t scrap it
✅ Long-term patience outperforms short-term panic.
How We Can Help
At Financial Planning Matters, we guide individuals and families through all stages of their wealth journey… from long-term investing and pensions to smart retirement strategies.
If you're concerned about your current portfolio, or unsure how to protect your finances in times like these, we’re here to help.
📩 Get in touch with our team or book a consultation to review your investment approach.
Your Trust, Our Expertise.
