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Secrets to successful investing

Navigating stock market downturns

 

When the market gets a bit rocky

It’s normal to feel unsure about your investments. You might wonder if you should be doing something different. But before making any changes, take a breath and think about these 6 simple principles. They’re here to help you stay steady, even when things feel uncertain.


The 6 principles

Think long-term

Markets go up and down, it’s just what they do. The reasons change, but they’ve always recovered over time. So, while past performance isn’t a promise, history shows that staying invested can pay off.

Invest for goals 5 to 10 years away

Investing works best when you’re planning for something further down the line. Whether it’s a new home, retirement or your children’s future, it’s a long journey. Don’t let short-term ups and downs throw you off course.

Spread your investments

Putting all your eggs in one basket isn’t the best idea. By investing in a mix like shares, bonds, property and gilts - you reduce the risk. If one drops, the others might hold steady or even rise.

Know your comfort zone

Everyone’s different when it comes to risk. Some people are fine with the highs and lows, others prefer a smoother ride. Think about what suits you - and how long you’re planning to invest. The longer your timeframe, the more room you’ve got to recover from any dips.

Expect some bumps

Investing isn’t always smooth sailing. But having a plan and sticking to it can help you stay in control when things get choppy.

Stay informed, but don’t panic

It’s good to keep an eye on the news, but don’t let headlines push you into snap decisions. Trust your plan and remember why you started investing in the first place.

One last thing…

Good investing takes patience, discipline and a clear focus on your goals. If you can stay calm during the tough times, you give your investments the best chance to grow over the long term.

Please remember that the value of investments and the income from them can fall as well as rise, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

What UK market performance over the past 30 years shows us

The S&P World Index (GBP) shows long-term growth from 1995 to 2025, with several short-term declines caused by major world events.

Download the graph that shows the S&P World Index growth from 1995 to 2025 PDF(608KB) 

  • 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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Important legal information

Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.