Following a sharp downturn in global markets triggered by the announcement of new US tariffs, investment experts are urging investors to remain patient, as current market conditions may persist for some time.
Kevin Quinn, Chief Investment Strategist at Bank of Ireland, acknowledged the discomfort of market declines but emphasized that such fluctuations are an inherent part of investing. “Sharp drop-downs like this are part of the investment process,” Quinn said. He compared the current situation to previous downturns, such as those seen in 2000, 2008, during the COVID-19 pandemic, and in 2022. Despite these challenges, Quinn stressed the importance of holding steady through the volatility. “Equally large gains—like we saw in the last couple of years—are part of the investment process as well.”
Quinn did note that for individuals who anticipate needing access to their investments in the short term, adjustments might be necessary. He recommended that those in such situations seek personalized advice. “If your need for money is more immediate, you should think more carefully,” he said. “We’re going to have choppy waters for a while yet.”
The recent market downturn follows a period of remarkable growth, particularly late last year, when stocks surged following Donald Trump’s election victory. The sharp declines have effectively removed much of the “froth” that had built up during this time, bringing markets back to levels last seen around August 2024.
This market turbulence comes at a time of heightened interest in investing, according to the latest Bank of Ireland Savings and Investment Index. Quinn attributed this increased interest to the significant gains seen in markets between 2023 and 2024. However, the survey, which was conducted before Trump’s tariff announcement, showed a dip in investor sentiment. “There was a lot of exuberance after the Trump election victory, but now people are talking about the ‘Trump Slump,’” Quinn explained. He noted that many of the gains made since mid-2024 have been given back in recent weeks.
The BOI survey also highlighted a rise in the number of people saving, with savings habits returning close to pre-pandemic levels. However, rising living costs have made it more difficult for people to save as much as they would like.
Meanwhile, investment firm Regionally’s co-founder and co-director, Mr. Urquhart Stewart, advised against panic. Speaking on RTÉ’s Morning Ireland, he explained that recent market figures from China and Japan are reflective of a global slowdown. “They’re catching up with the rest of the world after a holiday last week, and the figures may look frightening, but this is something that happens regularly in the markets,” he said.
Urquhart Stewart acknowledged the uncertainty surrounding a potential recession but pointed out that the European Union is already weakened, adding that the last thing it needs is further economic strain, particularly from new tariffs. “The key word in any economy is ‘confidence,’ and what Trump is doing is ensuring that the rest of the world has no confidence,” he stated.
Despite the challenges, both Quinn and Urquhart Stewart agreed that investors should not panic, noting that market downturns are not unusual and often represent a temporary phase in the investment cycle.
