Halfway Through the Year: A Lesson in Market Volatility and Investor Patience – The Human Side Of Money presented by Client Care

As we approach mid-May—my birthday month, no less—it’s hard to believe we’re nearly halfway through 2025. Time has flown, and the world’s financial markets have given us quite a ride already. Just five weeks ago, we were in the thick of what felt like market chaos: indices were swinging wildly, with daily fluctuations of 4% to 5%. Investors were panicking, and uncertainty clouded every decision. Adding to the noise, Donald Trump was tossing out tariffs like confetti, leaving markets and investors scrambling to interpret the implications.

As an advisor, I can say with confidence that it was not a comfortable time. The panic, disbelief, and relentless flood of news made it a testing period for even the most seasoned investors. But fast-forward to today and the numbers tell a very different story. The JSE (Johannesburg Stock Exchange) has delivered a remarkable 17% return over the past 12 months, and the MSCI World Index is up 10% over the same period. Who would have predicted that outcome in the middle of all that fear?

What this illustrates is a fundamental truth: market volatility is not unusual. It’s not a bug in the system—it’s a feature. While the recent volatility felt especially intense, that’s partly because it was fresh in our minds and amplified by constant media coverage (Financial Porn). Markets have always gone through such periods.

It’s easy to say “don’t react” during times of turmoil, but it’s far harder to follow through. Fear tempts us to act. Yet, as has happened time and time again, doing nothing proved to be the best course. Holding steady during turbulent times often leads to the most rewarding outcomes.

The real challenge for investors is to understand and accept that volatility is part of the journey. The best way to cope with it is by crafting a long-term investment strategy that aligns with your personal financial goals—and then sticking to it. When you do that, you can stop reacting to market noise and start focusing on the bigger picture.

So as we look forward to the second half of the year, remember this: stay the course, trust your plan, and most importantly—behave yourself. That’s the surest path to a comfortable and well-planned retirement.

Dirk Groeneveld, Certified Financial Planner.