Ready for Trump 2.0? Navigating Market Volatility as Long-Term Investor

Key points:

• Markets Are Resilient: Over time, global markets have consistently rebounded from major crises, including wars, pandemics, and financial meltdowns, proving their ability to reward patient, long-term investors.
• Focus on Fundamentals, Not Noise: Political uncertainty and short-term market volatility often dominate headlines, but they rarely impact the underlying value of well-diversified portfolios.
• Stick to Your Plan: Maintaining a disciplined, diversified investment strategy and ignoring short-term distractions is key to navigating uncertainty and capitalising on long-term growth opportunities.

How to Prepare and What to Expect As a Long-Term Investor

Donald Trump has been handed the keys to the White House and his return to the centre of political stage has reignited debates about how his policies might shape financial markets. Known for his bold and often unpredictable approach, Trump’s presidency previously brought tax reforms, trade wars, and deregulation—all of which contributed to significant market volatility. Now, investors are asking: What will Trump 2.0 mean for their portfolios?

While Trump remains notoriously unpredictable, history provides us with some answers. During Trump’s first term, markets experienced periods of heightened uncertainty, but they didn’t just survive—they thrived. Despite dramatic headlines and policy swings, global equity markets delivered strong returns. Over the past 15 years, global equities (MSCI ACWI) have returned 292%, weathering events like the US-China trade war, Brexit, debt crisis in the Euro area and COVID-19. This resilience highlights the importance of focusing on long-term goals rather than being distracted by short-term noise.

And here’s an even broader truth: the market has weathered much worse than the policies of any president. From pandemics to wars, financial crises to geopolitical upheavals, the market has historically always found a way to recover and reward patient investors. This resilience is a testament to the adaptability and innovation of global businesses and economies. For every moment of crisis, there has been recovery—and often, significant growth.