Lately, we’ve had some questions from clients wondering, is now the time to reduce risk?
Should I sell some shares to sell off equities or sit tight and wait for a correction?
It’s a reasonable concern. The headlines are full of it – talk of tech bubbles, stretched valuations, and predictions that the rally can’t last. AI stocks, in particular, have dominated recent gains. The Economist recently highlighted how a handful of tech giants, dubbed the “Magnificent Seven”, have driven most of the market’s performance this year.
Even respected voices like Jeremy Grantham are sounding cautious, warning that markets may be “dangerously overvalued.”
So yes, there’s a lot of noise. But that’s not new. And it’s not a reason to panic.
How do the experts see it?
Experienced investors and institutions are watching the current environment closely, not with alarm, but with a healthy dose of realism.
The Bank of England in its October Financial Stability Report noted that equity markets are more vulnerable to disappointment, especially if enthusiasm around AI begins to wane. They’re not forecasting a crash exactly, but they are highlighting that expectations may be running ahead of reality.
Jamie Dimon, CEO of JPMorgan Chase, recently said the chance of a market correction is higher than most investors think: closer to 30%, not the 10% many are expecting. He wasn’t predicting a collapse, just acknowledging that the environment is more fragile.
Like most pros, he admitted: nobody knows when this might happen.
While the odds of a pullback have increased, the timing remains uncertain. That’s always true.
What should investors do?
History shows us that trying to time the market based on sensationalised headlines rarely (if ever) leads to better outcomes.
Investors that stick to a well-diversified, global portfolio tend to fare better than those who react to short-term noise.
Markets are ever changing; that’s part of it. What matters most is having a strategy that adapts over time, not trying to outguess it.
Corrections will come and go. The real challenge isn’t surviving them – it’s resisting the urge to believe they require action.
How Citygate sees it
We believe that understanding how markets work is key to staying calm during periods of volatility. Investors who stay the course are more likely to benefit from long-term growth and compounding.
To put it in perspective:
An investor who put £10,000 into the S&P 500 in 1970 and left it untouched would have over £3 million today. That’s despite recessions, wars, political upheaval, and technological revolutions.
That’s not luck. That’s discipline.
Uncertainty is part of investing. The question isn’t whether it will show up – it’s how we respond when it does.
The result
At Citygate, we’re here to guide you through uncertainty – not just when markets are rising, but when they wobble too.
Our investment philosophy doesn’t change with the headlines. We believe in building resilient, long-term portfolios that are designed to weather volatility and benefit from the power of compounding over time.
If you’re feeling unsure about your current strategy, let’s talk. A calm conversation can go a long way in helping you stay confident, focused, and invested.
