Finance & economics | Buttonwood

How to invest in chaotic markets

Contrary to popular wisdom, even retail investors should pay attention to volatility

Illustration of two hands bound together. Opposite is a laptop with charts on the screen.
Illustration: Satoshi Kambayashi

Just ignore it. That, in short, is the advice given to retail investors when stockmarkets convulse, as plenty have over the past few weeks. Watching hard-earned savings disappear in a flash tends not to promote a cool head. So do not check your portfolio, do not tot up your losses and, above all, do not decide that now is the time to overhaul your entire investment strategy. Simply wait for the storm to pass and for share prices to resume their long march upwards.

Explore more

This article appeared in the Finance & economics section of the print edition under the headline “Controlled chaos”

From the August 17th 2024 edition

Discover stories from this section and more in the list of contents

Explore the edition

Discover more

Donald Trump in Brownsville, Texas on November 19th 2024

Trump wastes no time in reigniting trade wars

Canada and Mexico look likely to suffer

Illustration of a large anvil falling down on a government building.

How Trump, Starmer and Macron can avoid a debt crunch

With deficits soaring, their finance ministers will have to be smart


Scott Bessent speaks at the National Conservative Conference in Washington, DC.

What Scott Bessent’s appointment means for the Trump administration

The president-elect’s nominee for treasury secretary faces a gruelling job


What Donald Trump and Bernie Sanders get wrong about credit cards

Forget interest rates. Rewards are the real problem

Computers unleashed economic growth. Will artificial intelligence?

Two years after ChatGPT-3.5 arrived, progress has been slower than expected

Should investors just give up on stocks outside America?

No, but it is getting a lot harder to keep the faith