The 2025 financial year is underway and already we have had a timely reminder of the potential volatility in listed stock markets, when our market fell 3.7% in a single day.
Other markets around the world also fell sharply.
At the time of writing the markets have been more settled, but certainly for a few days there were genuine concerns that the falls were a prelude to something much bigger. In general, these concerns have ebbed and flowed according to the outlook on inflation and consumer spending.
Like everyone else, and we stress everyone, we have no idea what the short-term outcome will be. We do know that being reactive to shocks is a disaster. This includes withdrawing funds as a result of a fall or even rushing to invest after a big rise.