You have likely heard the adage, “time in the market, not timing the market”. Today, this phrase feels more relevant than ever.

You won’t have missed the market volatility at the beginning of April 2025, as Trump’s newly imposed tariffs panicked investors and caused markets around the world to fall.

Indeed, the Guardian reveals that several indices experienced significant volatility [1]. On 7 April 2025, the:

• S&P 500 fell as much as 4.1%, having declined more than 20% from its recent peak in February
• FTSE 100 closed down 4.38% 

It’s understandable to feel concerned if you’ve seen the value of your investments fall. Despite this, successful investors often look beyond short-term volatility – continue reading to discover why.
 
1. History shows that investing over the long term usually results in growth

History has consistently shown that the longer you remain invested, the more likely you are to experience growth. Take the S&P 500, for example. Business Insider reveals that, since its inception in 1957, it has returned an average of around 10.5% a year [2]. 

Despite occasional setbacks – such as the Covid-19 pandemic or the 2008 financial crisis – the long-term trend has remained upwards.

Even looking at the last decade, performance has fluctuated somewhat, as the table below shows:

While returns have varied – even facing declines some years – the index has still produced an average annual return of 13.3% (with dividends) over the 10-year period to the end of 2024.
 
This shows that even though markets fluctuate year to year, staying invested through the ups and downs has historically paid off.
 
2. It’s worth making the most of the positive effects of compounding

When you stay invested over the long term, you might be able to benefit more from “compounding returns”. 

This allows you to generate returns on both your initial investment and the gains you accumulate over time.

This “snowball” effect can significantly boost your wealth in the long term. For instance, if you invested £10,000 with an average annual return of 5%, your investment would grow to £10,500 after a single year.
 
If you reinvested these returns and then generated another 5% the following year, this would apply to both the initial £10,000 and the additional £500, bringing the total value to £11,025.
 
It’s worth noting that if you attempt to time the market in response to volatility and sell your investment, you might not benefit as much from compounding over time.
 
3. Timing the market could mean you miss out on some of the market’s best days

Volatility may tempt you to sell your investments during periods of downturn with the idea of either cutting your losses, or even buying them back at a lower price.

However, timing the market is incredibly challenging to get right, and missing just a few of the market’s best-performing days could significantly affect the value of your portfolio. 

Interestingly, historical data suggests that some of the market’s worst-performing days are often followed by its best.
 
Take, for instance, the chart below, which shows the 20 best trading days (represented by orange bars) and worst days (represented by blue bars) since 1 January 1980.

Source: Vanguard [3]

Sell your investments during a downturn and you could miss out on the subsequent recovery that often follows shortly after, meaning you’ve ultimately lost out.

A financial planner could support you and your investment decisions

Ignoring the temptation to make emotion-led decisions is easier said than done, especially when your hard-earned wealth is on the line.
 
This is where a financial planner could make a difference. They can support you in remaining disciplined, especially when markets are unpredictable.
 
Expert reassurance could help ensure that your investment strategy remains aligned with your goals and tolerance for risk, even when headlines seem worrying.

By helping you build confidence in your plan and resisting the urge to make knee-jerk reactions, a planner could support you in staying focused and letting your investments grow over time, rather than trying to time the market.
 
Please email info.wp@titanwh.com or call us on 0800 048 0150 to find out how we could help you.

Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
 
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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