Navigating Market Volatility Series March 2025
After delivering exceptional returns in 2023 and 2024, investment markets in 2025 have reminded us that volatility — including share market pullbacks and corrections — is a natural and recurring part of the investment cycle. That makes now an ideal moment to revisit some key principles for navigating market volatility, helping you stay prepared and focused on the long term.
Concept #5: Market declines are common but never last
Market declines are more common than most people might think. The chart below compares calendar year returns (the blue lines) and the largest intra-year declines (the red diamonds) in the Australian share market over the past ~40 years. Although the end-of-calendar-year returns have been overwhelmingly positive, it is rare that the market will go through an entire year without experiencing a meaningful decline at some stage. While unsettling, short-term market volatility is inevitable and a normal part of investing. Disciplined, patient, and long-term focused investors understand this and know that, over time, markets always recover and go on to post gains.
Source: Morningstar/Evidentia. S&P/ASX All Ordinaries TR Index since 1982.
Ironbark Advice is the sponsor of the Partners Portfolios. Ironbark Advice is comprised of the following wholly owned entities of Ironbark: Advice First Pty Ltd, Advisory Group Pty Ltd, ARTT Group Pty Ltd, Brisbane Financial Services Pty Ltd, Elevate Financial Solutions Pty Ltd, Emohruo Financial Services Pty Ltd, Invest Blue Armidale Pty Ltd, Invest Blue Brisbane Pty Ltd, Invest Blue Coffs Harbour Pty Ltd, Invest Blue Direct Pty Ltd, Invest Blue Gladstone Pty Ltd, Ogilvie Financial Services Pty Ltd, TDT (Tas) Pty Ltd, The Bravien Group Pty Ltd, Vintage Wealth Pty Ltd and Wainscott Financial Planning & Advice Pty Ltd, trading as Ironbark Advice are authorised representatives and credit representatives of Akumin Financial Planning Pty Limited, Australian Financial Services Licence and Australian Credit Licence No. 232706. Countrywide Advice Pty Ltd and GrowUp Financial Pty Ltd trading as Ironbark Advice are authorised representatives and credit representatives of Charter Financial Planning Limited, Australian Financial Services Licence and Australian Credit Licence No. 234665. GR & LC Thompson Pty Ltd trading as Ironbark Advice, is an authorised representative and credit representative of Hillross Financial Services Limited, Australian Financial Services Licence and Australian Credit Licence No. 232705. LFC Advice Pty Ltd (ABN 19 647 509 466) trading as Ironbark Advice, is a Corporate Authorised Representative of LFC Group Pty Ltd (ABN 35 644 576 965), AFSL 526600.