If you watch or read the news at the moment, it’s easy to think the world is falling apart. Political tensions, elections, and talk of global conflict seem to dominate every headline. It can all feel a bit bleak – and when you’re also hearing that some professional investors are ‘turning cautious,’ it’s natural to wonder whether it’s time to be worried.
Yet, strangely, the investment markets don’t appear to agree with the headlines.
STRONG MARKETS IN AN UNCERTAIN WORLD
Despite the gloomy tone of much of the news, global stock markets – particularly in the United States – have performed remarkably well this year. Inflation has eased, interest rates are expected to come down, and company profits have remained robust.
Technology has also played a major role in supporting optimism, with artificial intelligence continuing to transform industries and drive investor enthusiasm. Even areas that had lagged behind, such as parts of Asia and emerging markets, have begun to show encouraging signs of strength.
So why the disconnect between how the world feels and how markets behave?
Part of the answer lies in resilience. Economies have proven stronger than many feared, employment remains healthy, and businesses continue to adapt. In short – despite plenty of reasons to worry, the global economy keeps moving forward.
WHEN GOOD NEWS MAKES US NERVOUS
You might think strong performance would make investors happy, but it often has the opposite effect. When portfolios are showing healthy gains, the instinct to “lock in profits” or protect against future falls is entirely natural.
We all remember past market corrections, and it’s human nature to fear giving back recent growth. But short-term ups and downs are part of long-term investing. The key is to separate noise from signal – and to ensure portfolios remain balanced rather than reactive.
THE REAL MEANING OF DIVERSIFICATION
We often talk about diversification, and while it can sound a little repetitive or even trite at times, it really does matter – especially now. It’s impossible to know in advance where the next phase of strong returns will come from.
Right now, for instance, the price of gold is stronger than it has ever been. Traditionally, this can suggest that investors are seeking a safe haven, but there may be more to it. Gold is also being recognised as an asset that sits outside the usual currency system, and its strength can reflect growing demand for independence from the fluctuations of the dollar, euro, or pound.
Because our portfolios include a range of different assets – including those designed to behave defensively – we’re capturing some of the benefits of this shift.
At the same time, Asian markets have been gaining momentum, offering valuable diversification benefits of their own. These regions can act as a counterweight to any slowdown across Western economies. This blend – exposure to defensive assets like gold and to growth markets in Asia – shows how diversification isn’t just about spreading risk; it’s also about capturing opportunity wherever it arises.
INSIGHTS FROM OUR TRUSTED INVESTMENT PARTNER
Our investment partners at LGT Wealth Management recently summed up the current situation well:
“Uncertainty has defined the global economic landscape in 2025, with headlines and equity markets sending mixed signals all year. Yet equity markets, particularly in the US, continue to reach new highs, supported by solid company earnings and improving inflation data. While valuations are elevated, this reflects strong underlying profitability – meaning investors are paying for quality.
Our approach remains one of balance: maintaining diversification, focusing on active fund managers, and avoiding over-exposure to the small group of technology giants that have led much of the rally. There are still attractive opportunities across global markets, from Japan and Europe to parts of the emerging world. Caution is sensible, but it is not the same as crisis.”
Source: LGT Morningstar, 28 October 2025
IN SUMMARY
So, is it all doom and gloom?
We don’t think so. The world may feel unpredictable, but much of that uncertainty is already reflected in prices. Behind the noise, businesses are still innovating, economies are still growing, and investors who stay the course continue to be rewarded.
As always, if you’re unsure how current conditions affect your own portfolio, we’re here to review it with you – ensuring your investments remain aligned with your goals we hope to help you continue to have peace of mind as your capital remains important to us and we continue to aim for attractive investment returns over time.
If you would like to discuss your options please contact NBL. We will be happy to guide you through all the issues highlighted above and help you decide what is right for you.
Past performance is not a guide to future returns. The value of investments can fall as well as rise, and you may not get back the amount originally invested.
Source: LGT Wealth Management, Morningstar, Bloomberg (as of 28/10/2025)
