Navigating volatile markets
With recent global events causing ongoing market volatility, it’s understandable to feel concerned about your super. But it’s important to remember – super is a long-term investment.
History shows that market ups and downs – while unsettling – are a normal and expected part of long-term growth.
What we’re doing to manage risk
At Russell Investments, our portfolio management team is actively monitoring financial markets and carefully managing your money through this period of uncertainty. Our portfolio managers are:
- Staying diversified across sectors, asset classes, and geographies to manage “risk uncertain” environments.
- Cautiously rebalancing portfolios that were more defensively positioned—modestly increasing equity and credit exposures back toward strategic asset allocations.
- Maintaining higher liquidity buffers to provide flexibility in responding to market dislocations or new opportunities.
Keeping calm and carrying on
When headlines look alarming and markets fluctuate wildly, doing nothing can often be the best course of action.
Markets have been unsettled by a range of factors – including recent tariff changes in the United States – and economic data has added to the unease.
While it may be tempting to “do something” to protect your nest egg, history reminds us that events like recessions, natural disasters, financial crises, and pandemics have all triggered volatility – and in each case, markets have recovered over time.
Emotional, panic-driven decisions made during turbulent periods can derail long-term progress. Staying focused on your goals is key.
Key takeaways:
- Avoid ‘knee-jerk’ reactions: Switching investment options or moving to cash during periods of market volatility can lock in losses and risk missing the recovery.
- Play the long game: The further you are from retirement, the less short-term market moves matter. Super is designed for decades.
- No one can time the market: Even experts can’t predict the market’s short-term moves. Missing just a few days of gains can impact your long-term returns.
- Diversification matters: Spreading investments across multiple asset classes reduces risk. Our GoalTracker (MySuper) investment option is diversified across asset classes and designed to support your long-term goals.
If you prefer to choose your own investments, you have access to a range of 20 investment options across diversified, sector, responsible and third-party categories.
Help when you need it
If you are unsure about your investment choices, we offer advice at no extra cost.
This may be especially useful if you’re nearing retirement, with a shorter investment horizon to navigate. Find out more about your advice options and get in touch with us here.
