The current global situation is tumultuous, with significant geopolitical risks including the closure of the Strait of Hormuz and ongoing conflicts like the Russia-Ukraine war, yet equity markets have shown resilience, with international stocks performing particularly well. In times of uncertainty, it is advised to stick to a disciplined investment strategy rather than reacting impulsively to news, as maintaining a consistent asset allocation can lead to better long-term outcomes.
In times of geopolitical uncertainty, maintain a rules-based investing approach by setting a clear asset allocation strategy and sticking to it, regardless of market volatility. This disciplined approach, such as maintaining a specific percentage of equities in international stocks despite past underperformance, can yield significant rewards when markets recover. Avoid reacting to news and emotional impulses; instead, focus on your predetermined investment plan.