Over the past week, I’ve had a few conversations about how the recent escalation in global conflict could affect financial markets. It’s a question that took me back to my commentaries from early 2022, when the Russia-Ukraine crisis began to unfold. It reminded me once again of the value of staying grounded with a disciplined investment approach, especially during periods of uncertainty.

While geopolitical shocks can lead to short-term market volatility, their lasting impact on markets has historically been limited. Although concerning, the initial reaction tends to be typical and generally short-lived. In fact, past geopolitical events have rarely led to long-term disruptions in market performance, and many had less impact than events like the tariff announcements that were announced by Trump and his administration a few short months ago.

As the situation evolves, markets will likely remain choppy, but our portfolios are built to weather these cycles, capturing gains in rising markets and managing downside in times of stress.

Warren Buffett put it best: “Successful investing takes time, discipline, and patience.”  While no one can predict the future, history suggests that sticking to a sound investment plan and keeping emotions in check offers the best path forward.

Please don’t hesitate to reach out if you have questions.

*Any view or opinion expressed in this article are solely those of the Representative and do not necessarily represent those of Harbourfront Wealth Management Inc. The information contained herein was obtained from sources believed to be reliable, however accuracy is not guaranteed. The information transmitted is intended to provide general guidance on matters of interest for the personal use of the viewer, who accepts full responsibility for its use, and is not to be considered a definitive analysis of the law or factual situations of any individual or entity. Any asset classes featured in this article are for illustration purposes only and should not be viewed as a solicitation to buy or sell. Past performance does not necessarily predict future performance, and each asset class has its own risks. As such, this content should not be used as a substitute for consultation with a professional tax or legal expert, or professional advisors. Prior to making any decision or taking any action, you should consult with a licensed professional advisor.
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