Not long ago, I was on a flight heading off on a much-needed holiday. Just as I settled into a good book and a cup of tea, the seatbelt sign flicked on and the plane suddenly shook – turbulence. My drink wobbled, my stomach flipped, and around me I could see a few anxious faces. It was unpleasant, no doubt. But as someone who’s flown many times before, I knew this: turbulence, while uncomfortable, is completely normal. Pilots train for it. Planes are built for it. And the most important thing? We were still on course to arrive safely at our destination.

That bumpy flight felt a lot like what we’re seeing in the markets right now.

The recent tariff policy announcements have triggered a lot of uncertainty – prices are dropping, headlines are alarming, and people are understandably feeling nervous. If you’re a KiwiSaver member or have money in managed funds, it’s natural to wonder: Should I be doing something? Should I move my money to something “safer”?

Here’s my suggestion: For most people the best thing to do is nothing.

Why it can make sense for KiwiSaver members to stay the course

For most people, KiwiSaver is a long-term investment. If you’re still years away from retirement, your balance should be able to ride out any market ups and downs over time. What matters is where you end up, not what’s happening mid-flight.

Switching funds during a dip can mean you lock in your losses. Imagine selling your house in a slow market just because prices dipped – you wouldn’t do that unless you absolutely had to. The same logic applies to your KiwiSaver account. Markets recover, and history shows they tend to recover well over time. Switching from a growth fund to a conservative fund now might feel safer, but it often means missing the bounce-back later when share prices recover.

So, unless your situation has changed significantly, such as needing to access your KiwiSaver for a first home – my suggestion is to sit tight. You’re likely still on course.

Managed Fund investors: check your investment timeframe

If you’re invested in a managed fund, one of the important things to consider is your investment timeframe. Managed funds are generally recommended for medium to long term goals – typically having a suggested minimum investment timeframe of 3 to 10 years or more. That means short-term ups and downs are expected along the way.

Rather than reacting to headlines or short-term market movements, the best approach is often to stay focused on what really matters: your personal goals, your timeline, and the reason you started investing in the first place.

But if your plans have changed or you might need access to your money sooner, it’s a good idea to have a chat with your financial adviser to make sure your investment strategy still fits your plans.

Why market volatility is normal

The news headlines would make you think every market drop is a catastrophe, but the truth is, volatility is part of the game. Markets go up, markets go down. It’s not always comfortable, but it’s not unusual either.

Tariff policy changes, interest rate decisions, global politics – these things have always influenced markets. And yet, over time, long-term investors have historically come out ahead by staying invested, not by trying to time every bump.

The danger of emotional decisions

I often say: “Markets don’t lose money – people do, by reacting the wrong way.”

Switching funds in a panic, withdrawing investments during a dip, or trying to “wait it out” on the sidelines are strategies that tend to backfire. You often miss the market recovery, you lose confidence, and it becomes harder to get back on track.

Instead, remind yourself of your destination. What’s your goal? Retirement? A home in a few years? Building wealth for the next generation? Focus on that, not the noise in between.

Let’s talk if you’re unsure

If all this still feels confusing or overwhelming, we understand. That’s what our team of advisers are here for. You can drop us an email, call us on 0508 347 437, or chat with us online.