Why You Should Invest More Amidst Crisis Headlines

Every time crisis headlines dominate the news, it’s natural for investors to hesitate. War, inflation, political instability, and recession warnings can make markets feel like they’re teetering on the edge. It feels safer to wait until things “settle down.” However, the reality is that the stock market doesn’t price in panic; it prices in future expectations, especially future earnings.

That means what you’re seeing in the news today has likely already been absorbed by the market. What drives market prices is what investors anticipate will happen next, particularly regarding a company’s business performance. When we invest, we’re not buying the latest headline; we’re buying the potential that a company has to generate future profits. And that performance is powered by something remarkably resilient: capitalism.

The Power of Buying When Others Pause

Even in the worst downturns, companies adapt, innovate, and push forward. Entrepreneurs don’t wait for the news to improve; they build anyway. Businesses cut costs, find efficiencies, launch new products, and tap into new markets. That engine of progress doesn’t stall just because headlines are gloomy.

History backs this up. Look at any major market downturn, the dot-com bubble in 2000–2002 saw the Nasdaq plunge nearly 78%, yet within a decade it more than tripled from its lows. During the 2008 Global Financial Crisis, the S&P 500 fell about 57% from peak to trough, but recovered all losses within five years and went on to hit record highs. Even during the COVID-19 crash in early 2020, global markets fell over 30% in just weeks, yet rebounded to all-time highs within months, fueled by stimulus and economic recovery.

The common thread? Recovery is often followed by sustained growth, and historically, those who stayed invested or strategically increased their positions during downturns have captured the strongest gains once markets rebounded.

Markets React to the Future, Not the Fear

Fear-based headlines tend to exaggerate what’s already happening or what might happen. But markets are forward-looking. By the time the crisis has passed, and the media narrative improves, the market may have already begun to rebound. Waiting for good news often means missing out on the early stages of recovery.

That’s why investing during periods of fear can be a smart move. Historically, investors who stayed invested, or added more during downturns, have been rewarded over time. Businesses continue to create value, which translates to future earnings, and ultimately, returns for investors. Investing in well-managed companies or diversified funds during these times allows you to take part in that long-term growth.

Volatility Can Be an Opportunity

It’s important to remember that volatility isn’t always a bad thing. It can create entry points for long-term investors. When prices drop, it doesn’t necessarily mean a company’s value has vanished. More often, it’s an emotional response to uncertainty.

This is where having a solid strategy helps. Knowing your risk tolerance, goals, and time horizon can allow you to act rationally, even when markets are volatile. Emotional investing tends to hurt portfolios. Strategic investing builds them.

Stay Disciplined, Stay Invested

You don’t need to predict the market’s every move. You just need to stay the course with a plan that aligns with your goals. And you don’t have to figure it out alone. Let’s build your strategy together.

Disclaimer:‍‍‍‍‍‍ Investment carries certain risks. You should not just rely on results as an indication of your financial needs. You should understand and familiarise yourself with any investment and the associated risks before investing. You are also recommended to seek professional advice before making any decision to buy, sell or hold any investment or insurance product. The views and thoughts expressed in the post belong solely to us, and not to Manulife Financial Advisers Pte Ltd, or any other group of individuals.