Periods of heightened market volatility understandably draw attention, particularly when they are linked to geopolitical conflict and unsettling headlines. With the current conflict in Iran, it is natural to pause and ask what this means for your investments.
Putting recent market moves into context
After a prolonged period of rising markets, recent movements have actually been relatively modest. At the time of writing the Dow Jones index has fallen by c.6% in the month to 16/03/2026; the FTSE 100 has fallen less than 2% over the same period. Indeed global markets remain substantially higher than they were even six months ago.
This context matters; periods of weaker or choppier performance often follow strong runs as markets reassess expectations. This does not mean markets cannot fall further in the short term – we should always expect them to - but it does mean recent volatility should be seen as part of a normal adjustment rather than a sign that something has fundamentally broken.
Uncertainty is a permanent feature, not a new one
Geopolitical events, including conflict in the Middle East, have always been part of the investment landscape. Today we have an unpredictable US administration creating further uncertainty, which can amplify short-term market reactions and investor sentiment.
While this can feel unsettling, markets are designed to process uncertainty. They continuously absorb political, economic and geopolitical risks and reprice accordingly. This process is uncomfortable at times, but it is not unusual and it is not something investors should look to second guess.
Long-term portfolios matter most
We should always remind ourselves that markets can be volatile over short periods, while investing is inherently long term. Short-term market movements rarely tell us anything meaningful about long-term returns.
At Mivida, we have built your financial roadmap for the long term. Whether you are building wealth, drawing an income, or doing a bit of both, your portfolio is designed to support you over many years, not just the next few months. Short-term market volatility does not mean your long-term objectives have changed.
How portfolios are built to cope
We partner with carefully selected, highly experienced investment management firms, whose sole focus is to build resilient portfolios that are deliberately diversified across different assets, regions and industry sectors. This will not insulate investors from the full effect of market falls, but it reduces reliance on any single asset or area to drive long term returns, and helps smooth the journey over time.
Cash also plays an important role. Holding cash for known spending or income needs can provide reassurance and flexibility, which brings valuable peace of mind. However, cash should be seen as comfort, and not competition to an investment portfolio. Over the long term, money intended to last and support future goals needs exposure to assets that are linked to economic growth, simply to keep pace with inflation. We will of course help you strike the right balance between cash held for short term needs and peace of mind, versus your investment portfolio for the longer term.
Managing realistic expectations
History shows that reacting to short-term market movements, or trying to time decisions around headlines, is usually counterproductive. After periods of sharp or prolonged falls, market recoveries often arrive unexpectedly, and missing even a small number of strong days can have a lasting impact on long-term returns. While we have not seen any extreme market falls to date, the possibility of further volatility is something we should always expect and plan for.
Feeling unsettled during periods like this is entirely human. From a financial standpoint, you can be reassured that your portfolio is being managed with long-term discipline and perspective. Short-term market movements alone would not normally prompt change.
Your investment strategy is built for uncertainty. If you would like any further reassurance or simply want to talk things through, we are always here for a chat or a meeting.
Olly Phillips
Director
