It’s only March, and already, 2025 is shaping up to be a turbulent year for investors.
As you likely know, markets are temporarily down from the recent peak. However, it’s not the size of the decline that’s causing the most damage. It’s the noise.
Every time the market sneezes, the news cycle screams pneumonia. Social media lights up with instant “hot takes,” doom-laden predictions, and amateur economists masquerading as experts. A dip in the great companies of the world becomes a “crash.” A pause in growth becomes a “collapse.” And before you know it, even rational, well-adjusted investors are reaching for the panic button.
The reality? Market declines happen. Always have. Always will.
Volatility is not a flaw in the system—it is the system. But in today’s hyper-connected world, we’ve lost all sense of proportion. Everything is a crisis. Everything is politicised. The combination of market movements and people’s political views is proving toxic.
This is where we at Clearwater come in.
Not just as financial planners or portfolio managers but as behavioural coaches. Because when panic sets in, logic goes out of the window. And if no one is there to stop it, years (sometimes decades) of hard work can be undone with a single bad decision.
Maybe you’ve already seen it in the last few weeks. Friends with well-diversified portfolios and clear long-term plans are spooked. Why? Not necessarily because they’ve seen their valuations fall (it would be best if they hadn’t looked), but because they’re seeing headlines that fuel their fears, social media posts that confirm their biases, and politicians who are more than happy to pour petrol on the fire.
In times like these, some clients start asking questions they wouldn't usually ask. They begin second-guessing the strategy. They look for quick fixes.
Our job is to stop that spiral. To provide context. To remind you that your plan was built with downturns in mind. That volatility isn’t the enemy; emotional decision-making is. In these moments, we are often the only barrier between fear and financial self-sabotage.
The world has changed. The speed and intensity of information has changed. But the fundamentals of good behavioural financial advice haven’t.
Our job is to help you, our clients, to stay calm, stay the course, and stick to the plan.
Please feel free to share this blog with anyone you think might find it useful.
As always, if you have any questions about this piece or any other finance-related matter, please do not hesitate to contact me.
Yours sincerely,
Graham Ponting CFP Chartered MCSI
Managing Partner
