Article last updated 24 July 2025.
In his latest video, Co-Chief Investment Officer Ed Smith gives some context to the recent 10% peak-to-trough fall in US equities. Here are five key points on what it means for investors:
- We’re biased toward thinking the past was a less uncertain place – it wasn’t; you can’t predict the future, but you can prepare for it
- Short-sharp falls like the one US equities suffered in March are not uncommon, and usually are followed by recovery and positive returns over the full calendar year
- We aren’t seeing any signs of financial stress, and should therefore stay invested - over the long run, equities have nearly always beaten sitting in cash
- It’s easy to overestimate the influence of politicians on long-term stock market performance; broader economic and market drivers matter far more
- The US market continues to have a high proportion of companies that score highly on measures of quality, and tend to outperform their peers during periods of uncertainty.
You can read more about our views on the latest economic and market developments and what they mean for you at this link to our Insights page.
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