The more recent market weakness, spanning late 2025 into early 2026, has felt quite different to the market downturn in early 2025.
Instead of a single, identifiable trigger, which was instigated by Trump’s tariff episode, markets this time have been responding to a much broader mix of factors, including geopolitical tensions, higher oil prices, ongoing inflation pressures, and uncertainty around the timing of interest rate cuts. As a result, market declines have been more gradual and spread across a wider range of sectors, giving the impression of a more persistent slowdown.
The events of 2025 were a reminder that market setbacks are a normal part of investing. US large cap equities experienced their first correction—defined as a fall of 10% or more—since October 20231, largely driven by tariff concerns. While recent developments in the Middle East might have been expected to lead to higher market volatility, movements have so far been more contained than those seen during 20252.
Despite this backdrop, investment markets have delivered generally positive, although uneven, returns over the past six months. US equities have been relatively subdued, while international developed markets have performed more strongly. European equities have benefited from easing inflation and improving economic stability, while parts of Asia have been supported by stronger exports and stable currencies3.
Overall, global equity markets have achieved mid single digit gains, underlining the ongoing benefits of maintaining a well diversified investment portfolio4.
For those with concerns about the current climate in financial markets and how investments might be affected, or who would like further information, why not pick up the phone today and book a free without obligation consultation.
*1 HL.com, 15/04/2026
*2 Wikipedia, April 2026
*3 Yahoo Finance, April 2026
*4 Yodelar, April 2026
This article gives information as to past performance of investments. Past performance is not a reliable indicator of future performance. The value of investments will rise and fall, so you could get less than what you put in.