25 March 2026

While volatility can feel unsettling, it is a normal part of investing.

Jonathon Jones,

Editor, TrustNet

Patience beats prediction when markets are volatile, according to experts at Vanguard, who have reminded investors that staying invested brings better results than trying to time the market.

The firm highlighted volatility last year surrounding US president Donald Trump’s ‘Liberation Day’ tariffs as an example. Had investors sold out of their investments on 8 April 2025 and returned to markets one month later, their returns would have been 10 percentage points lower today than if they had remained invested throughout (14.4% versus 4.8%).

James Norton, head of retirement & investments at Vanguard Europe, said: “Investing is a marathon not a sprint.

“While volatility can feel unsettling, it is a normal part of investing. Successful investing isn’t about trying to time when to buy or sell, but about having a clear plan, staying invested and contributing regularly. By doing so and maintaining a balanced, diversified portfolio investors give themselves the best chance of investment success and meeting their long-term goals.”

The research noted that the MSCI World index has experienced eight bear markets since 1972, each time recovering and then pushing to new heights, as the below chart shows.

Diversification also matters, however. US tech stocks have dominated returns in recent years but in 2025 a globally diversified portfolio would have made better returns. The report noted that the UK and emerging markets were up 23% versus 11% for the S&P 500.

Lastly, the firm said investors should not fear market highs, noting they are often followed by new records.

“You may feel uneasy when markets are rallying but history shows that markets often go on to reach more highs,” the report found.

Please Note:

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. 

Please note the above article was first published by Trust Net and should not be regarded as individual investment advice on whether to buy, sell or hold any of the investments mentioned. Please speak to Ethical Offshore Investors or your personal adviser BEFORE you make any investment decision based on the information contained within this article.

At Ethical Offshore Investments, we hold a very high opinion on Vanguard and their range of low cost investment options. 

Clients can access the Vanguard funds / ETF’s mentioned in this article via the various Investment Platforms, and not be subject to additional entry fees or commissions, when doing so with Ethical Offshore Investments.

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