The return of Donald Trump to the White House has meant his late-night social media posts have once again been rattling investment markets.

Sudden movements in the value of shares and bonds – investment volatility – can be unsettling for even the most seasoned investor. You could be tempted to retreat to cash and await calmer times. However, a better approach may be to stay invested. As an old market adage says, what matters is time in the market, not timing the market.

Like it or not, investment volatility is normal. If you’re a long-term investor, with a financial goal that is years into the future, you should focus on that distant point, not what happens – or is reported as possibly due to happen – in the short term. The long-term trend, not the short-term noise, is what you should follow.

You can limit the impact of market volatility by having a well-diversified portfolio. It’s rare for every asset, country and sector to move in the same direction so, for example, if your USA equity funds fall in value, your global fixed interest funds may rise. However, diversification is not a one-off exercise; your portfolio should be reviewed and rebalanced yearly.

Beyond diversification, make sure that you have an adequate cash reserve, so that if you need emergency funds you’re not forced to sell when markets are down.

One final tip: If you can – and in the 2025 media landscape, it is difficult – try not to become a 24/7 news junkie. It’s not good for either your emotional or investment health.