Investment markets rarely move in a straight line. Periods of volatility are a normal part of investing, even though they can feel uncomfortable at the time.

Recent market conditions have been influenced by a combination of inflation concerns, changing interest rate expectations, geopolitical risks and uncertainty about the global economic outlook. Australian equity market commentary in 2026 has pointed to increased uncertainty from factors including:

• capital gains tax and negative gearing changes impacting the property market
• reduced investor demand for property investment loans affecting bank returns
• increasing energy prices, global growth
• central bank policy and investor sentiment.

When markets are volatile, the temptation is often to move into cash and wait for certainty. The difficulty is that markets often recover before the news feels positive and missing the early stages of a recovery can have a meaningful impact on long-term returns.

For long-term investors, the more useful questions are:

• Does my portfolio still match my goals?
• Is my asset allocation appropriate for my stage of life?
• Do I have enough cash and defensive assets for short-term needs?
• Am I taking too much, or too little, risk?
• Should my portfolio be rebalanced?

For retirees, the key issue is sequencing risk. This is the risk of needing to draw income from an investment portfolio when markets are down. A well-structured retirement portfolio will typically include a mix of growth assets for long-term returns and defensive assets to help fund regular income needs during periods of market weakness.

For accumulators, volatility can also create opportunity. Regular investing, including super contributions or direct investment plans, can allow you to buy more units when prices are lower. This does not remove market risk, but it can help turn volatility into a disciplined long-term strategy.

The main message is to avoid making emotional decisions during short-term market movements. Investment strategy should be driven by goals, timeframes, risk tolerance and cash flow needs, not headlines.

Important information

This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs. You should obtain and consider the Product Disclosure Statement relating to any product referred to in this presentation before making any decision about whether to acquire the product.

WSC Group (Aust) Pty Ltd is an authorised representative of Count Financial Limited ABN 19 001 974 625, holder of Australian financial services licence number 227232 ("Count"). Count is owned by Count Limited ABN 11 126 990 832 of GPO Box 1453, Sydney NSW 2001. Count Limited is listed on the Australian Stock Exchange. The information on this web page is not financial product advice and is provided for information only.