The past few years has seen a lot of political upheaval around the world, from Brexit to the election of Donald Trump as US President, to the more recent war in Ukraine. These events and many others have sent shockwaves through the global financial markets, and investors are understandably nervous about what the future may hold.

Opportunity for investors

However, it is important to remember that periods of political uncertainty may actually present opportunities for savvy investors. For example, during times of market turmoil, fund values may fall, which could present an opportunity for investors to access those funds at a discount and potentially make a profit when the market recovers; however, it’s never guaranteed.

Of course, investing during times of political upheaval comes with risks, and in times of uncertainty, it is important to remember that markets can be volatile and to take a long-term view in relation to your investment returns.

There are some things that investors may want to keep an eye on in the current climate.

Trade: One of the key issues facing investors at the moment is the potential for trade barriers to be erected between countries. This could have a significant impact on global supply chains and businesses that rely on exports.

Currency: The value of currencies can also be affected by political events.

Interest rates: Changes in interest rates can also have an impact on investment portfolios. For example, if interest rates rise, this could lead to a fall in bond prices.

So, what does the current global political upheaval mean for investors?

Here are four things to consider:

1. Be patient and don’t panic

One of the most important things for investors to remember during times of political turmoil is to stay calm and be patient. It can be tempting to sell all of your investments in a panic, but this is often not the best course of action.

Instead, take a step back and assess the situation. Consider whether the political event in question is likely to have a long-term impact on the markets or if it is simply a short-term blip. If it does seem like the latter, then it may be best to hold onto your investments and wait for the market to stabilise.

2. Review your investment portfolio

Another important thing for investors to do during times of political upheaval is to review their investment portfolios. This helps to identify any potential risks and make sure that your portfolio is well-diversified.

For example, if you have most of your investments in shares of companies that operate in a single country, then you may be more exposed to political risk than someone who has a more diversified portfolio across a number of geographies.

3. Look for opportunities

While there are certainly risks associated with investing during times of political turmoil, there may be some opportunities. As mentioned earlier, periods of market turbulence can present an opportunity to buy shares at a discount.

So, if you believe that the current political upheaval is only temporary, then it may be worth considering adding some investments to your portfolio. Just be sure to do your research and only invest in companies that you feel comfortable with.

4. Seek professional, regulated advice

If you are unsure about how to navigate the current political landscape, then seek professional investment advice from a regulated individual. They can help you to understand the risks and opportunities associated with investing during times of political turmoil and make recommendations based on your individual circumstances.

The current global political landscape is undoubtedly uncertain. However, this doesn't mean that investors should panic or sell all of their investments. Instead, it is important to stay calm, review your portfolio, and look for opportunities.

Please note: This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment(s) and the income derived from it, can go down as well as up and you may not get back the full amount you invested.

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