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Secrets to successful investing
Navigating stock market downturns
What’s happening?
Stock markets around the world have moved sharply in recent days. This has mainly been driven by events in the Middle East, including recent military action involving the US, Israel, and broader retaliatory attacks by Iran. These developments have caused some market reaction.
Geopolitical events, such as conflicts, elections or tensions between countries, can affect financial markets. They often lead to periods where prices rise and fall more quickly than usual. This can affect the value of your investments, including pensions.
While this can feel unsettling, these effects are usually temporary. Markets have been through similar periods before and often recover. Investing is designed with the long term in mind, which helps smooth out short term ups and downs.
Market Strategists at J.P. Morgan Asset Management have recorded a webcast to look at the potential scenarios and the implications caused by current Middle‑East events and the influence on global markets.​
This information is not intended to be advice or a recommendation. The views are of J.P Morgan Asset Management and Halifax is not responsible for the content of the webcast.
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.
What UK market performance over the past 30 years shows us
Download the graph that shows the S&P World Index growth from 1995 to 2025 PDF(608KB)Â
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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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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.
