Navigating Risk in a Changing Market: Finding Your Investment Stride
By Jenny Brown – CEO, JBS Financial
The investment landscape has always been dynamic, but in recent years, market movements have been increasingly influenced by global political events, economic policies, and interest rate fluctuations. From trade tensions and elections to geopolitical instability, these factors can create both challenges and opportunities for investors.
Understanding how these macro events impact markets is crucial for making informed investment decisions. While short-term volatility can cause uncertainty, history has shown that markets tend to recover and grow over time. That’s why having a structured investment strategy tailored to your goals and risk tolerance is key to long-term success.
As we navigate market fluctuations, one thing remains constant: successful investing requires patience, discipline, and a strategy that aligns with your financial objectives.
How Market Events Impact Investors
Markets react to political decisions, central bank policies, and global economic shifts in different ways. For example:
✔ Interest rate changes influence borrowing costs, affecting both businesses and consumers. Rate hikes often slow economic growth, while rate cuts can boost investment activity.
✔ Election cycles bring uncertainty, but historical data suggests that long-term market trends are driven more by economic fundamentals than by political outcomes.
✔ Geopolitical events—such as trade wars, military conflicts, or policy shifts—can cause short-term volatility, but markets typically stabilise over time.
✔ Sector-specific trends—such as advancements in technology, climate policies, and healthcare innovation—can create new opportunities for investors.
The key to navigating these fluctuations is to stay invested, focus on your long-term goals, and avoid making impulsive decisions based on short-term market movements.
What Type of Investor Are You?
Just as we all move at different paces in life, our investment approach should match our personal risk tolerance, goals, and time horizon. Understanding your investor profile helps you make informed decisions that align with your financial journey.
1. The Cautious Walker – A Low-Risk Approach
If you prefer stability and predictability, you may align with the cautious walker investor. This group values capital preservation over high returns and prefers low-volatility investments such as:
✔ Government bonds
✔ Blue-chip dividend stocks
✔ Defensive asset classes like infrastructure and utilities
While the returns may be modest, the key benefit is lower risk exposure, making this strategy ideal for investors nearing retirement or those who prioritise financial security.
2. The Adventurous Runner – A High-Growth Seeker
On the other end of the spectrum, adventurous investors embrace risk and seek higher returns by investing in:
✔ Growth stocks, including technology and emerging markets
✔ Alternative assets such as private equity or cryptocurrency
✔ Start-ups and high-growth companies
These investors understand that higher risk brings the potential for higher rewards, but they also recognise that market downturns can be more severe. Long-term commitment and a high tolerance for volatility are essential in this strategy.
3. The Marathon Runner – A Balanced, Long-Term Investor
Much like a marathon runner, these investors prioritise consistency and endurance. They maintain a well-diversified portfolio that includes:
✔ A mix of growth and income-generating assets
✔ Exposure to international markets for diversification
✔ A strategic asset allocation plan based on long-term financial goals
This approach provides the best of both worlds—the potential for growth without extreme volatility. Many investors in this category focus on steady wealth accumulation, retirement planning, and legacy building.
Finding Your Investment Rhythm
Your investment journey is personal—it’s about finding the right balance between risk and reward while ensuring your portfolio is aligned with your goals.
✔ Understand your risk tolerance—Assess how comfortable you are with market fluctuations.
✔ Diversify your investments—Spreading your assets across different sectors and geographies reduces risk.
✔ Maintain a long-term perspective—Reacting emotionally to short-term events can lead to poor investment decisions.
✔ Seek professional advice—A financial adviser can help tailor an investment strategy to suit your individual needs.
A Message from Jenny Brown – CEO, JBS Financial
“In times of market uncertainty, having a clear investment strategy is more important than ever. At JBS Financial, we help our clients navigate changing economic conditions by ensuring their portfolios are structured to align with their financial goals. Whether you’re a cautious walker, an adventurous runner, or a steady marathon investor, having the right strategy in place will give you confidence in your financial future.”
Take the Next Step with JBS Financial
The investment world is constantly evolving, and having the right guidance and strategy in place can make all the difference in achieving financial security and long-term growth.
Are you investing with clarity and confidence? Let’s discuss how we can help you build an investment strategy tailored to your risk profile and financial objectives.
📞 Book a consultation with the JBS Financial team today and take control of your investment future.