2025 has seen continuing global conflict, the rollout of Trump’s tariffs, and political wranglings at home as the chancellor attempts to make the numbers of the UK economy add up.
These events, along with a multitude of others, have had a knock-on effect for the stock market, which has been turbulent at times.
You’ll have heard us state time and again that your long-term plans are long term for a reason, and that short-term volatility is to be expected. Your best bet remains to stay invested, focus on your ultimate goals, and keep calm.
That said, there are times when life milestones, changes to your priorities, or external events might mean you need to review and adjust your investments.
At Globe IFA, we’re on hand to do the hard work so you don’t have to, but we won’t always know when these events occur. Keep reading for three situations when a portfolio check-in might be needed.
1. When life events alter your priorities
While we conduct annual reviews, we understand that life can change in an instant. Be sure to contact us if you experience a major life event that could change your long-term plans.
Births, deaths, and marriages could all shift your priorities. You might start investing for a grandchild, while the end of a relationship might mean your plans for retirement change.
External events like changes to the Inheritance Tax (IHT) treatment of pensions might mean you need to look for alternative ways to pass on wealth tax-efficiently. High inflation might also prompt you to reassess funds you hold in high street bank accounts.
An unexpected windfall might mean you suddenly have more funds to invest.
As your invested wealth grows, so too does the complexity of calculations, the tax implications, and the potential for losses if the fund isn’t carefully managed. Thankfully, we’re here to help.
2. When life milestones impact your attitude to risk
Your retirement date is a huge milestone and one you’ll have worked towards throughout your career.
At the start of your career, when your retirement is still a long way off, you can likely afford to embrace a higher level of investment risk. Your money will have the chance to recover from any short-term blips, and you’ll have a longer investment horizon over which to benefit from compound growth.
As your retirement date nears, though, you might want to take less risk. This helps consolidate gains so that your fund doesn’t take a large hit at a time when you can least afford it – and when recovery time is limited.
The life events listed above (like births or deaths) can also impact your attitude to risk. If you start investing for a grandchild, for example, you might have a shorter investment term and therefore a lower threshold for risk.
3. When market movements upset your asset allocation
2025 has been a turbulent year in geopolitics. Donald Trump’s inauguration in January was followed by a raft of worldwide trade tariffs that had an immediate effect on global markets. Continuing conflict in Ukraine and Gaza has also led to market upheaval.
Short-term volatility is to be expected, and when market blips occur, your best plan will always be to remain patient and focused on your long-term goals.
Your investment portfolio is diversified to spread investment risk, so a drop in one asset class, sector, or geographical region may be offset by gains elsewhere. However, larger market movements and more persistent trends can have a more significant impact on your portfolio and could mean you need to revisit your asset allocation.
The rise of AI, for example, has led to tech companies outperforming other sectors and accounting for a larger share of leading indices such as the S&P 500. You may be overly exposed to tech stocks without knowing it and need to diversify into other sectors. (You can read more about the rise of AI in our latest blog.)
Global events like the introduction of trade tariffs and continuing conflict in Europe and the Middle East have led to supply chain tensions and a rush from some nations to localise their manufacturing bases. These issues could mean that revisiting your geographical diversification is key to avoiding an over-reliance on areas that could be hit by future disruptions.
Remember that Globe IFA has decades of experience in world markets
We’re here to look after your investments so that you can relax and stay focused on the long term.
While geopolitical events will always impact global markets, this will rarely affect your long-term plans. Where continuing trends do knock your asset allocation out of alignment, we’ll always let you know and make recommendations based on our experience and expertise.
Get in touch
If you do have any concerns about global events and their impact on your portfolio, please email hello@globeifa.co.uk or call us on 020 8891 0711 to discuss how Globe IFA’s expert financial advisors can help you manage your long-term financial plans.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
