When equity markets are rising it is really easy to stick with the key principles required to be a successful long-term investor; unfortunately, it gets far harder when they start to fall and uncertainty climbs. At the exact time when discipline is required, it can so often desert us. The current tariff turmoil is a perfect opportunity to make some very bad decisions. To help avoid this, here are some dos and don’ts for investors:

– Don’t keep checking your portfolio.

– Don’t watch financial news.

– Don’t think you will make good investment decisions in this environment.

– Don’t make emotional choices – sleep on it.

– Don’t listen to people who didn’t predict the current market tumult, when they predict what is coming next.

– Don’t listen to anyone predicting anything.

– Do focus on your long-term investing goals.

– Do remind yourself that equity markets have generated strong long-term returns despite frequent periods of losses (which are sometimes severe and we cannot avoid).

– Do remember that equity market losses always come alongside some very worrying news about the future.

– Do remember that nobody knows what will happen next – it might get better, it might get worse.  

– Do remember that this is why you hold a diversified portfolio and have a long-term time horizon.

– Do go for a nice walk in the fresh air.

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My first book has been published. The Intelligent Fund Investor explores the beliefs and behaviours that lead investors astray, and shows how we can make better decisions. You can get a copy here (UK) or here (US).