Investment volatility

Market downturns can be unsettling, no one likes to see their investment value drop. Regardless of whether you’re new to investing or have been doing it for years, seeing your portfolio go down can make you question everything. It’s natural to wonder if you made a mistake or if you should stop investing until the market "feels safer".

At Fynbos Money, we understand how difficult it can be to stay calm when things feel uncertain. But part of investing, part of growing your wealth over time, is accepting that volatility will always be part of the journey. We’re here to help you navigate these fluctuations and stay focused on your long-term goals.

Volatility Is Expected

Markets naturally move up and down. Sometimes it’s due to economic news, global events, or shifts in investor sentiment. Volatility is an inherent feature of public markets; expecting and planning for it is part of successful investing.

Looking at the image above, taken from our 10X Total World fund, we can see how naturally markets fluctuate over time. Notice the dips and spikes throughout the chart. These movements aren’t out of the ordinary. They’re a normal part of how global markets operate, driven by events like economic reports, investor sentiment, and broader world news. More importantly, while the short-term swings can look dramatic, the general long-term trend is steadily upward. This illustrates why it’s essential to remain patient, stay diversified, and focus on your long-term goals rather than reacting impulsively to every short-lived market move.

Historically, the Market goes up.

We’ve just seen how natural short-term swings can be by looking at the 10X Total World fund. Now, let’s zoom out even further to see the bigger picture. Below is a chart of the S&P 500’s performance over the last 25 years. Notice that it isn’t a smooth, straight line. There are dips, corrections, and even periods of no growth along the way.

But what stands out more than the downturns is the overall upward trend. When viewed across a long enough timeline, these temporary pullbacks become minor blips on a steadily rising path. This is why taking a long-term view is crucial. Historically, despite the inevitable ups and downs, the broader market has continued to grow over decades, rewarding patient investors who stay the course rather than react to every short-lived market movement.

How Fynbos Helps You Navigate Volatility

1. Diversified Funds
   We offer funds that spread investments across various assets, stocks, bonds, and countries. Diversification can help reduce the impact of market swings because not all assets move in the same direction at once.
2. Build an Emergency Fund
   Before you invest, we encourage you to put aside savings for immediate needs. Having an emergency fund means you’re less likely to tap into your investments prematurely.
3. Continue to Buy
   Even when markets go down, you can benefit from lower prices if you consistently invest. Over time, a strategy called “dollar-cost averaging” helps you buy more shares when prices are low, which can pay off during recoveries.
4. Automations and TFSA
   We make it easy to automate your investments and take advantage of tax-efficient accounts, like our TFSA solution. By setting up a consistent contribution schedule, you’ll remove the guesswork of trying to “time the market.”
5. Focus on the Long Term
   Volatility can be unnerving, but staying in the market has historically rewarded patient investors. A long-term perspective helps you ride out the ups and downs without making knee-jerk decisions that could hurt your returns.

Key Takeaways

• Volatility is normal: Expect market swings; they’re part of investing.
• Markets trend upward long-term: Don’t let short-term drops derail your big-picture goals.
• Fynbos Money is here for you: We offer diversified funds, an easy-to-access emergency savings account, automated investing, and TFSAs to help you navigate the ups and downs.
• Stay focused: Avoid panic-selling or trying to time the market. Keep your eyes on your long-term plan.

By staying disciplined, following a regular investment plan, and trusting the process, you can make sense of market volatility and ultimately come out stronger on the other side. Fynbos Money is here to help you every step of the way.