Financial Planning Resources

But as markets reacted to the latest round of Trump tariffs, and headlines painted their usual picture of chaos, fear took hold. Despite the ups and downs, their portfolio was actually up 13 per cent over the 18 months, something I reiterated more than once.

Sarah occasionally voiced her comfort with remaining invested, but Thomas’s anxiety ultimately steered the decision.

When understanding isn’t enough

This gap between intellectual understanding and emotional response is entirely human. No chart or historical average can prepare someone for the visceral discomfort of seeing numbers fall on a screen.

Part of the challenge is how we talk about investing. A few minutes of financial news can sound like a disaster movie: “Markets plunge”, “Investors lose billions”, “Stocks hammered by fears.” It’s no wonder Thomas felt as though he needed to act.

During our call, I tried to shift the focus.

“Thomas, when you invested with us, what were you really buying?”

He replied with the usual: stocks, funds, shares of companies.

“But what you actually own,” I said, “is the collective energy of people around the world, building, researching, designing, problem-solving.”

Sarah nodded. Thomas listened.

“Millions of people are going to work today – not thinking about the stock market, but about doing a good job, building a better life. That’s the engine behind your portfolio. And that doesn’t disappear overnight.”

The part that hurts

Sadly, despite follow-up emails and hesitation from Sarah, they chose to withdraw. I’ll admit, it stung.

Not because we lost clients, but because I failed to help them hold the line. I wasn’t able to give Thomas the reassurance he needed at just the moment it mattered most. And I believe that’s to their long-term detriment.

Just a week later, the market rebounded. President Trump announced a preliminary deal with China, and global indices rallied 3.5 per cent. Gains they’ll never see.

Worse still, they’ve transformed a temporary downturn into a permanent setback. That 13 per cent gain? Now being quietly chipped away by inflation, opportunity cost, and the very real possibility that they’ll never re-enter the market.

Sarah, in particular, stands to lose the most from this. Her horizon is longer, and this decision could well affect her quality of life in retirement. That’s hard to sit with.

A tale of two reactions

Contrast this with an email I received days later from another couple who invested around the same time:

“Thanks for the contact. As far as we’re concerned, we’ve stuffed our small investment under the Yellowtail mattress and forgotten about it… Compared with the decline in high street commercial property values in the past 15 years, this is not a reason for us to panic.”

Same markets. Same timeframe. Completely different response. One couple zoomed out, took a breath, and stayed focused on the bigger picture. The other acted from fear, and likely changed their financial trajectory in doing so.

Reframing the conversation

Perhaps we need a better language for investing, one rooted not in markets and volatility, but in people, in progress, in faith in the human drive to improve and create.

When the headlines are at their loudest, this perspective offers something firmer to hold on to. It reminds us that investing isn’t betting on today’s prices; it’s aligning ourselves with tomorrow’s effort.

As I often say:

“Long after today’s news is forgotten, people will still be waking up, going to work, and creating value. And those who stay invested in that journey, more often than not, find their patience rewarded.”

I sincerely hope Thomas and Sarah find their way back to investing when the time feels right. But I worry they won’t — and that their financial future will be smaller for it.

That’s the true cost of fear.  Not just what it takes away today. But what it quietly steals from the years ahead.

Names and identifying details have been changed to protect client privacy.

ABOUT YELLOWTAIL

Founded by Dennis Hall, Yellowtail are the trusted financial planners who advise affluent individuals & families in the South West and across the UK. Yellowtail’s experts provide the clarity, control and confidence to guide you through financial planning, estate planning, pension transfers and investment management directing your journey towards a prosperous retirement and financial peace of mind.