When geopolitical tensions rise—like the current situations dominating the news cycle—the stock market reacts violently. The headlines are terrifying. The instinct is to pull your money out of the market and hide it in cash until things 'calm down'.
This is the most destructive thing you can do to your long-term wealth.
Volatility is the Price of Admission
Stock market returns are the reward you get for tolerating uncertainty. If there was no risk, there would be no premium. Throughout history, the markets have weathered wars, pandemics, financial crises, and political upheaval. The global economy is incredibly resilient.
If you have a proper Liquidity Bridge (cash reserves for the short term), market drops don't matter because you don't need to sell your investments at a loss. Turn off the news, stick to your automated investment plan, and focus on the things you can actually control.