Progress, priorities, and a pair of earphones
There’s a lot going on in the markets - again. And it’s tempting to ask, “Should I be putting more in while things are down?” Especially if you’re young and feel like you’ve got time on your side. One of my clients in their twenties asked this recently. But equally I’m getting the question from more, shall we say, seasoned investors.
It’s a fair question. But it's also one that risks veering into the territory of timing the market - the very thing I urge people not to do. The truth is, we don’t know if markets will go further down before they go back up. No-one knows, don’t let them fool you otherwise. Turn them off, tune out the noise. But if you look at a long-term graph - say, 15 or 20 years - these wobbles barely register. So if you’re in it for the long run then why not, otherwise, read on.
So what should you do?
Well, you could perhaps start with this: everything has an opportunity cost. If you put money into the markets, you’re saying no to something else. Just like that £5 you spend on a coffee is £5 not going towards the paperback you fancied reading on holiday. Investing isn’t about gambling on the market, speculating. It’s about getting clear on your priorities - about putting your money where you want it to go.
And importantly, it’s also about structure. For anyone starting out (or even not-so-starting), I often talk about having three pots in your mind for savings:
A short-term pot - for emergencies and life not going to plan. Ideally, 3-6 months of expenses in an easy access savings account. Also for known expenditure, things you know you’re going to do and don’t want the stockmarket’s permission for.
A medium-term pot - for the bigger things over the next 2-5 years (buying a home, a wedding, an amazing holiday). You don’t want to risk being forced to sell at the wrong time, so a blend of cash and some investments makes sense.
A long-term pot - future-you stuff, or legacies. This is where you can be bolder. The goal is to stay in through the ups and downs - and maybe even top up when markets feel scary to others.
The very best strategy for most people to add to their longer-term pots is of course little and often. Set up a monthly commitment. Then set and forget. For a lump sum? The best time to invest isn’t about watching the FTSE, it’s about starting. Like that old line: “When’s the best time to plant a tree? 50 years ago. The second-best time is today.” Same with your financial plan. What matters most is that you Start. Press play. Move forward. Three years out of four market-based investments rise in value, so the odds are on your side.
Let’s talk about progress
We’re living in a world where, when your flight to Athens gets cancelled with twelve hours’ notice, you can rebook to Berlin, find an Airbnb, and start Googling how to say "hello" in German rather than Greek before you’ve even left the house. In the olden days, as my daughter calls them, you’d probably only find out about this once you got to the check-in desk - and your plans would be scuppered.
That’s human progress. So is the fact that my daughter now owns hair straighteners that are half the weight and twice as fast as the GHDs she used for 20 years. So is the fact that I finally bought a decent pair of earphones after six months of running with one dodgy bud. Why did I put up with it for so long? Why do we all make life harder than it needs to be?
I had the same conversation with two clients last week who struggle to spend money on themselves. And yet, sometimes spending is the smarter financial decision. It’s not always about sacrifice. It’s about asking: “What will genuinely improve my life?”
And progress doesn’t just apply to gadgets and travel. It applies to markets, too. And to us.
I’ve now lived through five major market crashes I can remember - the 1987 crash (I was at University learning about the Tulip Mania Bubble of 1637!), the dot-com bust in 2000 (when a group of us had just established our own Independent Financial Advisory Practice) the Global Financial Crisis of 2008, Covid 19 (ug), and many other peaks and troughs along the way, and now... well, whatever this one turns out to be.
What were you doing during those milestones?
Every time, the headlines screamed. Every time, people said “this time is different”. Indeed, the cause was different, but the outcome the same. Every time, things recovered. Often within a year, sometimes more messily - but recover they did. That’s progress, too.
Because easy doesn’t always feel right
Maybe we’re wired to believe things need to be difficult to be worthwhile. A bit of ego maybe. That’s why people train for months to run the London Marathon, shunning a run/walk strategy as ridiculous, or even when they could just walk in the sunshine. There’s something glorious in the hard things. In the effort. In the doing.
That’s why I wear my Garmin even though I never look at the data. It’s not about the metrics - it’s the ritual of pressing start. The commitment to just get going. The same applies to your finances. It’s not about over-analysing. It’s about having a plan and sticking with it. But start.
Markets will always wobble. Every wobble feels different. Every wobble brings a new headline. Financial advice guru Nick Murray puts it best: “Capitalism always finds a way”. The great companies of the world continue to innovate, to grow, to solve problems and create value. That’s human progress too.
Even skateboarding brands are getting in on the commentary – last week I was sent an email from one referencing last week’s volatility - which tells you everything about how whipped up the news cycle is. It didn’t say ‘chill dude’ though, that’s down to me.
So if you’ve had a week of doom-scrolling or overthinking, take a breath. Watch something daft (just not ‘The Watcher’, trust me). Try ‘With Love, Megan’ on Netflix if you fancy something sweet, escapist, and flower-sprinkled. Ask yourself what matters most, then make the choices that support that.
And maybe, finally, get the headphones, or some new straighteners, or whatever it is you are denying yourself. You’re worth it.
With warmth and a healthy dose of perspective, Jon.