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Secrets to successful investing
Navigating stock market downturns
Investing with Confidence
Geopolitical events like conflicts, elections, and tensions between countries can affect financial markets. They often lead to short‑term volatility, which means the value of your investments, including pensions, can move up or down quickly.​
The important thing to remember is that these effects are usually temporary, and markets often recover. The chart below shows how this has happened over the past 30 years. Investing is designed for the long term, which helps smooth out these short‑term ups and downs.
What to think about
What this might mean for you
Big headlines can feel worrying, but short‑term volatility is a normal part of investing. Markets have been through similar situations many times and usually adapt or recover.
Trying to react to every movement can add more uncertainty to your own plan. Taking a long‑term approach helps you avoid decisions that might lead to losses.
If you’re unsure what to do next, speaking to an independent financial adviser could help.
Download the graph that shows the S&P World Index growth from 1995 to 2025 PDF(608KB)
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This chart shows the S&P World Index (GBP) from 1995 to 2025. The index starts at about £125 in 1995 and ends just above £930 in 2025. Over these 30 years, the index generally rises, but there are several periods where it falls due to global events.
Key events and their impact
- 1999 to 2003: The index climbs quickly, then drops to around £200. This change is linked to the dot-com bubble, the 9/11 attacks and conflict in the Middle East.
- 2007 to 2009: The global financial crisis causes the index to fall sharply after reaching about £400.
- 2015: Growth slows but stays positive. This is due to a slowdown in China, the Greek debt crisis and lower petrol prices.
- 2020: The Covid-19 pandemic leads to a clear dip after a period of steady growth.
- 2022: The index moves up and down but keeps rising overall. This period includes the Ukraine war, higher inflation and rising interest rates.
- 2025: The index peaks near £1,200, then drops below £1,000. This is linked to new US tariffs.
Summary:
The S&P World Index (GBP) shows long-term growth from 1995 to 2025, with several short-term declines caused by major world events.
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