Secrets to successful investing

Navigating stock market downturns

 

When markets get a bit choppy

It’s natural to think twice about your investments. You might ask yourself, “Should I be doing something different?” But before making any big decisions, take a moment to reflect on 6 tried-and-tested principles. They’re here to help you stay steady, confident and focused - no matter what the market throws your way.

The 6 principles

Think long-term

Markets rise and fall, it’s part of the rhythm. The reasons for these changes have varied over the years but the UK market has always found its feet again. Past performance isn’t a crystal ball, but history shows that patience pays off.

Invest for goals 5 to 10 years away

Investing works best when you’re planning for the future. Whether it’s a new home, retirement or helping your children, it’s a long-distance run - not a sprint. Stay focused on your goals and don’t let short-term wobbles knock you off course.

Diversify your portfolio

Spreading your investments across different areas like shares, bonds, property and gilts helps cushion the blow if one takes a dip. It’s a smart way to manage risk and keep your money working for you.

Know your risk appetite

Everyone’s different. Some are comfortable with a bit of volatility and others prefer a steadier path. Think about what suits you and how long you’re planning to invest. The longer your timeframe is, the more room you have to recover from setbacks.

Prepare for some losses

Ups and downs are part of the journey. Having a plan and sticking to it can help you stay in control when things get bumpy.

Stay informed, but don’t overreact

It’s wise to keep an eye on the news, but don’t let headlines steer your decisions. Trust your strategy and remember why you started investing in the first place.

One last thought…

Successful investing takes discipline, patience and a clear view of your goals. By staying resilient during market dips, you give your investments the best chance to grow over time.

Please remember that the value of investments and the income from them can fall as well as rise, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

What UK market performance over the past 30 years shows us

The S&P World Index (GBP) shows long-term growth from 1995 to 2025, with several short-term declines caused by major world events.

Download the graph that shows the S&P World Index growth from 1995 to 2025 PDF(608KB)

  • This chart shows the S&P World Index (GBP) from 1995 to 2025. The index starts at about £125 in 1995 and ends just above £930 in 2025. Over these 30 years, the index generally rises, but there are several periods where it falls due to global events.

    Key events and their impact

    • 1999 to 2003: The index climbs quickly, then drops to around £200. This change is linked to the dot-com bubble, the 9/11 attacks and conflict in the Middle East.
    • 2007 to 2009: The global financial crisis causes the index to fall sharply after reaching about £400.
    • 2015: Growth slows but stays positive. This is due to a slowdown in China, the Greek debt crisis and lower petrol prices.
    • 2020: The Covid-19 pandemic leads to a clear dip after a period of steady growth.
    • 2022: The index moves up and down but keeps rising overall. This period includes the Ukraine war, higher inflation and rising interest rates.
    • 2025: The index peaks near £1,200, then drops below £1,000. This is linked to new US tariffs.

    Summary:

    The S&P World Index (GBP) shows long-term growth from 1995 to 2025, with several short-term declines caused by major world events.

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