Investors urged to focus on discipline, not ‘noise’ amid volatility

Yasmine Raso

Senior Journalist, Financial Newswire

16 March 2026

Investors have been warned to tune out the ‘noise’ and remain disciplined in their focus on portfolio fundamentals amid ongoing tensions in the Middle East fuelling market volatility, as concerns mount over the prospect of panicked reactions and ‘knee-jerk’ decisions leaving them worse off.

The warning comes from investment comparison marketplace, InvestmentMarkets, at the same time as the Australian Securities Exchange (ASX) saw its largest single-day drop in almost 12 months last week right before recouping a chunk of those losses the next day.

InvestmentMarkets chief executive, Darren Conolly, said while this may have spooked investors alongside general commentary causing a spike in panic over potential oil supply disruptions due to the violence in the Middle East, investors are encouraged to look beyond ‘markets turning red’ and focus on ‘maintaining a disciplined investment strategy’.

“When a conflict or major global event emerges, the first instinct for many investors is to adjust their portfolio immediately,” he said.

“Markets can be very volatile in the short term, but geopolitical shocks are something markets have experienced many times before. In most cases they don’t fundamentally change the long-term forces that drive investment returns.

“Geopolitical tension can certainly create periods of uncertainty, but it’s only one factor in a much bigger system,” he said. “Trying to reposition a portfolio every time a global event unfolds can lead investors to make reactive decisions that don’t always align with their longer-term objectives.

“A well-diversified portfolio is designed to manage exactly these kinds of events,” he said. “Diversification across sectors, asset classes and geographies helps smooth out shocks when markets become unsettled.”

Conolly also noted that times of geopolitical shock have historically paved the way for investor interest in lower-risk and more diversified strategies to skyrocket on its platform, as they move to reassess their portfolio’s risk exposure.

He said a ‘sleep-well portfolio’ that is built to weather volatile market conditions by leveraging strategic diversifiers without requiring investors to “react to short-term noise” would help them navigate uncertainty better.

“If investors feel compelled to act every time markets become volatile, it’s often a sign the portfolio isn’t properly diversified,” he said.

“One of the biggest risks during periods of market noise is panic selling. When investors sell, they may crystallise losses and miss the rebound when markets recover.

“Periods like this are a reminder that investing is a long-term exercise. Volatility is the price of admission and the fundamentals of diversification, discipline and patience matter most during these times.”