Warning for investors in market meltdown

While many investors may be tempted to sell off their assets during the current market downturn, experts are advising them to “lean in”.

The CEO of global financial advisory giant deVere Group, Nigel Green, advised investors to rely on the strength of their portfolios to make it through these turbulent times.

“A major sell-off is shaking global markets, but the smartest investors are ‘leaning in’, not backing away,” Green said.

His comments come as European stocks plunged on Monday, 7 April, with Germany’s DAX sinking more than 9.5% and the Stoxx 600 suffering one of its steepest single-day falls since early 2020. 

In addition, Wall Street’s tech heavyweights lost over $1 trillion in value in a single session, while Asian markets extended losses overnight as new reciprocal tariffs rattled supply chains across China, Vietnam, Cambodia, and Sri Lanka.

This comes after United States President Donald Trump announced sweeping new tariffs last week, which caught markets off guard with their breadth and intensity. 

The negative impact of this was compounded when China quickly retaliated with 34% duties on United States goods and when the European Union vowed to impose its own countermeasures if negotiations broke down.

Despite the escalating trade tensions and market turmoil, Green urged investors to stay invested and stay strategic. 

“History teaches us that when others panic, opportunity is created. Savvy investors understand that volatility is part of the price you pay for superior long-term returns,” he said.

While sharp downturns dominate headlines, Green emphasised that recoveries often begin when sentiment is still deeply negative.

“Those who stay invested and act strategically during times like these are consistently the ones who reap the biggest rewards,” he said.

One of the most-cited examples of this is legendary investor Warren Buffett, who is notorious for “buying the dip” during market turndowns and raking in the rewards when the market recovers.

Buffett has never claimed to be able to “time the market.” Rather, he has repeatedly emphasised his belief that one should not look at the market’s movements when deciding whether to buy or sell.

Investment strategy during market downturns

Green advocated for a similar approach during the current market downturn but warned that a more tactical, precise approach is now essential. 

“This is not the time for complacency or guesswork. We’re entering a period where quality, diversification, and resilience will define success,” he said.

“Investors should be focusing on companies with strong fundamentals, global reach, and the ability to withstand pricing pressures. Regions less exposed to the tariff fallout could also offer compelling opportunities.”

“It’s about tilting portfolios intelligently toward strength, not sitting frozen in fear.”

He further stressed that parking assets in cash is not a risk-free strategy like many may think. “Holding cash may feel safe, but it is not a long-term strategy,” he warned. 

“Inflation relentlessly erodes the real value of money, and missing the market’s sharpest rebound days can have devastating effects on long-term portfolio performance.”

Green also pointed out that there are significant opportunities during this time, as historical data shows that some of the biggest single-day gains tend to occur during periods of extreme volatility – and missing them can permanently impair returns. 

“The idea that waiting for perfect stability will somehow protect investors is a costly illusion. Real wealth is created by staying engaged and positioning wisely,” he said.

“While Trump’s tough stance on trade is likely to keep markets choppy for the rest of the year, volatility itself can be a powerful ally for disciplined investors. 

“Volatility isn’t the enemy of wealth creation – inaction is.”

He explained that the investment landscape includes trade tensions, political posturing, and economic fears, and only those who can filter out the “noise” and stay focused on fundamentals will be best placed to seize the opportunities that follow.

“This is a time to be more selective, more thoughtful, and more decisive. It’s absolutely not the time to be on the sidelines,” he said.

“As the global economy adjusts to a more fragmented trade environment, capital will increasingly flow toward the strongest, most adaptable assets.”