Let’s be honest—investing can feel a bit like a rollercoaster sometimes, especially during periods of Market uncertainty. When we hit a patch of economic uncertainty, it’s completely natural to feel anxious about where to put your money, or whether you should even be investing at all. I’ve been there myself, refreshing my portfolio every five minutes and wondering if I should just cash out and sit tight until things improve.
But here’s the thing I’ve learned: uncertain times don’t mean you should stop investing. In fact, with the right mindset and strategy, these periods can present some of the best opportunities to build wealth over the long term.
So, let’s talk about how I approach investing when the markets are rocky—and how you can weather the storm too.
Understanding Market Uncertainty
First things first, what do we actually mean by “a period of uncertainty”? It could be anything from a looming recession, rising inflation, interest rate hikes, political instability, or even global events like pandemics or wars. These things shake investor confidence, often leading to market volatility—that dreaded word that sends many of us into panic mode.
Given the recent leadership changes in the US we are seeing a period of market uncertainty and volatility as Trump continues to impose tariffs on countries across the world.
But here’s what I remind myself: the markets have been through plenty of rough patches before. And over time, they’ve always recovered. That’s the nature of investing—it’s not about constant growth; it’s about long-term resilience.
Keeping Calm and Focusing on the Long Term
When things start to wobble, the first instinct for many of us is to pull our money out to “protect it”. I used to think that way too. But what I’ve learned is that trying to time the market rarely works. The real trick is to stay the course and focus on the bigger picture.
Think about it like this: if you’re investing for retirement or another long-term goal, you’re not going to need that money tomorrow. So why panic about short-term dips?
Every time I feel the urge to react emotionally to a market drop, I go back to my plan. I remind myself that investing is a marathon, not a sprint. If I sell now, I lock in losses. If I stay invested, I give my portfolio a chance to recover and grow, which is important if you believe in the growth of a stock.
Diversification: My Favourite Safety Net
One of the smartest things I ever did as an investor was embrace diversification. In simple terms, it means spreading your investments across different types of assets—like stocks, bonds, property, and even commodities. This way, if one area takes a hit, the others might hold up better.
My general rule of thumb is 80/20 with the majority in equities, of the 80% I invest in Global, Emerging Markets, UK and US stock. And the 20% I generally split equally between Property and Bonds. This makes up my core portfolio. I then have a handful of ‘satellite’ stocks that may be speculative, growth or dividend focused.
For example, during the pandemic, some of my shares dipped, but my bond investments stayed relatively stable. Having that balance made it much easier to stay calm and spot opportunities.
Now, I make sure my portfolio is diversified not just across asset classes, but also geographically. I invest in a number of index funds in addition to stocks, so I’m not reliant on just the UK or US markets. This helps cushion the blow during regional downturns and keeps things a bit more stable overall.
For an example of diversification with Stocks (My Satellite Portfolio):
Check out my UK ISA Dividend Pie on Trading 212 – https://www.trading212.com/pies/luatp0VFqoFU8OCO2DF6S6gWOttjK
Check out my US Growth Pie on Trading 212 – https://www.trading212.com/pies/luatp0VFqoFU8OCO2DF6S6Aj6IYHY
Pound-Cost Averaging: A Steady Approach
One of my favourite strategies, especially in uncertain times, is pound-cost averaging aka dollar cost averaging (DCA). Instead of investing a lump sum all at once, I invest a set amount of money each month—whether the market is up or down. Personally I do this via Trading 212 and Hargreaves Lansdown (HL), there are other cheaper platforms but this works for me at the moment.
Why DCA? It takes emotion out of the equation. I don’t have to second-guess whether it’s the “right” time to invest. I’m simply buying regularly, and over time, I end up buying more units when prices are low and fewer when prices are high. It averages out.
It’s also just so much easier mentally. I feel like I’m always doing something positive for my future, no matter what the market’s doing. And I never have to worry about “missing the bottom” or “buying at the peak.”
Rebalancing Without Panic
Now and then, I review my portfolio to see if my allocations are still in line with my goals. If one area has grown faster than others, I might sell a bit and reallocate to something underperforming. This is called rebalancing, and it helps keep risk levels where I want them.
But the key is to do it calmly—not in a panic. I only check my investments monthly, unless something really major is happening. Constant checking just fuels anxiety and leads to knee-jerk reactions.
Investing in What I Believe In
Another way I stay confident during uncertain times is by investing in things I genuinely believe in. Whether it’s sustainable companies, clean energy, or innovation-led tech, I like knowing that my money is backing businesses that are solving real problems and shaping the future.
This helps me stay patient. Even if short-term performance is rocky, I feel good knowing my money is working towards something meaningful. And more often than not, these are the companies that come out stronger after a downturn.
Keeping an Emergency Fund Separate
One of the biggest lessons I’ve learned as an investor is that your investment account is not your emergency fund. I have learnt this the hard way! Having 3–6 months’ worth of expenses in a separate savings account gives you peace of mind. I’m still building mine up, but I know it will mean I’m not tempted to sell investments in a downturn just because I need quick cash.
With a solid emergency fund, I will be able to afford to leave my investments untouched and let them ride out the storm. This is honestly one of the most underrated parts of a solid investment plan, especially during time of market uncertainty.
Uncertainty Is Part of the Journey
If you’re feeling uneasy about investing right now, know that you’re not alone. Market uncertainty is uncomfortable—but it’s also part of the journey. I’ve come to see these moments not as something to fear, but as opportunities to build resilience and grow as an investor.
If you truly don’t want to be in the market a alternative could be to invest just 50% of the amount you usually would. Allocate as normal and allocate the other 50% into a money market fund. This way you are making a return on your money, but be sure to set specific times to check in and readjust your portfolio, maybe increasing the balance to investments by 10% each month so 60% investments then 70% etc. Just remember time in the market is always better than timing the market.
By staying focused on my long-term goals, keeping my portfolio diversified, and investing consistently (even when it feels tough), I’ve managed to stay the course through choppy waters. Check out my post – The Psychology of Investing: How to Keep Emotions in Check
So, if you’re navigating a tough financial climate, just remember: you don’t need to be perfect—you just need to be patient. With the right plan, mindset, and a bit of grit, you can weather the storm and come out stronger on the other side.