Riding the Waves: How Market Volatility Can Strengthen Your Investment Strategy
📉Understanding Current Market Volatility
Recent months have seen sharp swings across global markets. Inflation pressures, shifting interest rates, and geopolitical uncertainty created turbulence in equities and bonds. Technology stocks, for example, experienced rapid sell-offs after AI-driven announcements, while energy markets surged and retreated in response to supply chain disruptions.
Yet history shows us that downturns are temporary. The S&P 500 fell more than 12% in April 2025, only to rebound nearly 40% over the following 10 months. Investors who stayed the course were rewarded.
Why Volatility Can Be a Good Thing
Dollar-cost averaging: If you’re making regular weekly, fortnightly, or monthly contributions, volatility works in your favour. When unit prices drop, you buy more units for the same contribution. Over time, this lowers your average cost per unit.
Portfolio resilience: Volatility helps rebalance portfolios that may have drifted after strong gains, keeping your risk profile aligned with your goals.
Long-term growth: Markets rebound in time. Staying invested ensures you capture the recovery rather than locking in losses.
The Role of a Financial Advisor
Working with a financial advisor is about more than choosing funds—it’s about building confidence in your plan.
Strategic planning: Advisors tailor portfolios to your risk tolerance and long-term objectives.
Behavioural coaching: Emotional reactions - like switching providers or chasing “hot” stocks - often hurt returns more than volatility itself.
Risk management: Advisors can introduce tools like defined-outcome funds or option-income strategies to smooth returns, keeping your plan on track
The Dangers of ‘Chopping and Changing’
One of the biggest risks during volatile times is reacting emotionally:
Switching providers or funds mid-volatility often locks in losses and misses the rebound.
Chasing performance undermines compounding—wealth is built by consistency, not reaction.
Staying the course ensures your contributions continue to work for you, even in turbulent markets.
Staying Disciplined Pays Off
Volatility is the price of admission for long-term growth. If you’ve set up regular contributions and aligned your portfolio with your goals, market downturns are not a reason to panic - recognise this as an opportunity to accumulate more units at lower prices.
✅ How We Can Help
At The Holistic Money Co., we recognise that volatility is a natural - and beneficial - part of investing. Our mission is to empower everyday New Zealanders with financial advice that builds confidence and resilience.
Part of that process is ensuring that your fund selection aligns with your risk tolerance (so you can sleep comfortably at night), investment goals, and timelines.
👉 Go to www.holisticmoney.co.nz today to book your free investment strategy review.
We’re genuinely excited about helping individuals and families build stronger financial futures - this benefits you, your tamariki, your mokopuna, and it helps New Zealand prosper as a nation.
I look forward to speaking with you soon.
Warmest regards, Kelly
