How to Invest Wisely When the World Feels Uncertain

There’s no shortage of worry in today’s markets.

Geopolitical tensions, persistent inflation, shifting interest rate expectations, and global policy changes have combined to create a sense of unease among investors. And if you’re feeling that, you’re not alone.

The key question is, what should you actually do about it?

Whether you’re managing a portfolio yourself or working with a financial adviser to manage it for you, now is a good time to take a step back, get centred, and make decisions with intention. Based on personal experience and the conversations I’ve had recently, here are three approaches that investors might consider in today’s environment.

Reassess the Foundation of Your Portfolio

Sometimes the market forces you to ask questions you’ve been putting off. And that’s a good thing.

The first step is to look at your current portfolio and ask: is this still aligned with your long-term goals, life stage, and risk tolerance?

For many, portfolios were built during a period of ultra-low interest rates and stable geopolitical conditions. That environment no longer exists. We’re now navigating a more complex world, and that means your asset allocation — your mix of equities, bonds, and cash, may need an update.

This doesn’t necessarily require drastic changes. But it’s worth reviewing whether you’re holding too much in any one region or asset class, or whether certain assumptions about risk and return still hold true.

Markets change. So do we. Your portfolio should evolve with both.

If You’re Feeling Stressed, Reduce the Volatility

Not all investment stress is about performance. Sometimes, it’s about how we feel during the ups and downs. If you’re checking your portfolio multiple times a day, feeling uneasy, or struggling to sleep, that’s a sign your portfolio may be taking on more risk than you’re comfortable with.

It’s okay to acknowledge this and adjust accordingly. It’s okay to ignore the peer pressure to stay invested.

Moving a portion of your portfolio into more stable, lower-volatility investments can help reduce stress. You’re not giving up on your goals.

You’re making a deliberate choice to preserve your mental clarity and reduce unnecessary worry.

There’s a big difference between reacting emotionally and making a thoughtful decision to dial down risk. The ability to think clearly and sleep well is part of being a sustainable long-term investor.

If Your Core Portfolio Is Solid, Look for Opportunities

If you’ve already built a well-diversified portfolio and you’re not losing sleep over market swings, that’s a great place to be. In fact, this could be an opportunity to explore selective ideas with long-term potential, especially those shaped by major policy and regulatory shifts.

Among the many opportunities, one area I’ve been paying attention to lately is the European Union’s defence sector.

Remember, this is not financial advice and I’m not going to tell you what stock or fund to buy.

What I am going to share with you, is how I think about the situation today and how it is important to deep dive into the specifics in your research before making any investment decision.

There’s been a noticeable change in how European governments are approaching their own defence capabilities. After years of underinvestment, the war in Ukraine triggered a massive rethink. But what’s happening now goes beyond a reaction. It’s becoming long-term strategy.

Here are two news regarding European defence policies that have caught my eye:

EU’s Readiness 2030 Strategy (formerly “ReArm Europe”)

Announced on 19 March 2025, the EU’s Readiness 2030 Strategy aims to mobilise over €800 billion in defence investment by the end of the decade.

• Unleash the use of public funding in defence at national level which allows member states to activate the national escape clause of the Stability and Growth Pact, which will provide them additional budgetary space to increase their defence spending, within the EU fiscal rules.
• A new dedicated instrument for Security Action for Europe (SAFE), allowing member states to immediately and massively scale up their defence investments through common procurement from the European defence industry, focusing on priority capabilities.

Proposed European Defence Mechanism (EDM)

On 7 April 2025, EU finance ministers discussed a joint defence fund to purchase and own defence equipment collectively, aiming to reduce duplication and increase scale. Proposed by a think tank, EDM would serve as an exclusive procurement agency in specified areas, as planner, funder and potentially owner of strategic enablers, and as a legal commitment to observe defence single market rules within the jurisdictions of its members. EU will need to pool procurement to the greatest extent possible and create a common European defence market including Britain as a major industrial defence player to boost competition, in order to have a chance to reduce its military dependence on the U.S. by 2030.

Again, this is just one angle I’m deep diving into. There are many different opportunities emerging from the broader geopolitical shifts we’re seeing, from supply chain realignments to energy independence strategies to digital sovereignty policies.

What matters most is that you pick a few themes that resonate with your interests, values and outlook, and study them deeply to see if you want to include these themes in your investment strategy.

Final Thoughts

At the time of writing, we are still in early days of the Trade War and it doesn’t look like the game of chicken between the United States and China is going to end any time soon.

This is just one of many global developments that may affect the long-term direction of markets. Rather than panic or stay frozen, investors can choose to respond in ways that are calm, thoughtful, and aligned with their personal goals.

Whether it’s reviewing your portfolio structure, lowering your exposure to risk, or selectively exploring emerging themes, the key is to make decisions from a place of clarity, not noise.

Lastly, every investor’s situation is different. You should always do your own research and consider speaking with a qualified professional before making any investment decisions. In particular, take time to understand the geopolitical forces at play, especially those arising from the current trade war and structural shifts in global power dynamics.

At the time of writing, the United States has announced new reciprocal tariffs on Chinese imports, a fresh escalation in the ongoing trade war.

This is just one of many global developments that may affect the long-term direction of markets. But rather than panic or stay frozen, investors can choose to respond in ways that are calm, thoughtful, and aligned with their personal goals.

While I’ve chosen to explore the European Union’s rising defence budgets as one potential long-term investment theme, it’s important to recognise that there are many different opportunities emerging from today’s geopolitical realignment.

For example, just yesterday (9 April 2025), LEGO officially opened a new $1 billion factory in Vietnam, a project originally announced in 2021. Due of the trade war, this new factory will cater to consumers in Asia and will not export products to the United States. LEGO is also constructing a separate $1 billion facility in Virginia, USA, expected to begin operations later this year.

Moves like these reflect how businesses are pivoting their strategies and if we may see broader trends over time, such as businesses investing in supply chain diversification, regional manufacturing, and resilience against geopolitical risk. As investors, paying attention to these shifts can help us identify new opportunities or reframe how we assess long-term value.