If you’ve glanced at the financial markets lately, you’d be forgiven for feeling like you’re strapped into a rollercoaster with no idea what’s around the next bend. The tariff turmoil, stirred up by Trump’s bold moves, has left global markets jittery.

Market’s run on two things – fear and fundamentals. Currently it’s fear that’s running the show. What impact will these tariffs have on demand and costs of goods? Which industries will take the hit? The answers are still up in the air, and it’s that uncertainty that can destabilise markets: investors hate the unknown.

But the good news is that markets don’t run on fear forever. Sooner or later, they snap back to the fundamentals—the nuts and bolts of the global economy.

The tariff talk has triggered a wobble, tangled up with falling interest rates and US Treasury yields. Add in the fact that $9 trillion of US debt needs refinancing by June 2025, and you’ve got a perfect storm keeping things lively. This choppiness might hang around for a while, but it’s not all bad news—especially if you’re playing the long game with your pension.

If you’re steadily dripping money into your pension each month, you’re snapping up more units at bargain prices – a silver lining for the long-term saver. But if retirement’s just around the corner, I can understand the worry. Without much time to ride out the dips – or a trusted adviser to chat it through with – it’s natural to feel the pressure.

As an experienced advisor with nearly 30 years’ experience, my advice for anyone at that point, is to look at what your income needs are – whether monthly or quarterly. Ideally you should already have a plan for this. Keeping some cash set aside in your pension can cover that, so these market swings don’t touch the money you rely on. Retirement income is hands-down the trickiest (and riskiest) part of your financial journey. That’s where good, independent advice makes all the difference – ideally before you hit that point.

So, what’s happened lately that’s caused such turmoil in the markets? Over the weekend, 50 countries waved the white flag, while more followed on Monday looking to review their tariffs on the US. The EU caved and Trump’s now upping the ante with hefty tariffs on China unless they buckle – which they probably will in the end, if not before a bit of retaliation. Last Friday, hedge funds got caught out, forced to sell, and that sparked the market mayhem you will have seen on the news. Now Trump's paused 'reciprocal' tariffs on countries worldwide to allow time for trade talks which has again impacted the markets with shares surging and the FTSE climbing 6%.

However, let's take a step back for a moment. The real world paints a much brighter picture: inflation’s easing, energy costs are down, and growth looks solid across most of the world, with estimates around 3% global growth this year. This crash? It’s got no real legs in the fundamentals. Oil’s cheap, inflation’s trending down, and companies are, by and large, in great shape. With expected rate cuts this year added in, I’m quietly confident about global growth.

So what are your next steps? Don’t let fear kill your mindset – or your portfolio. If your investments are in the hands of professionals who balance equities with government bonds and gold, you’ve got a buffer against the wild swings you’re seeing on TV. History backs this up – think back to 2020 and the Covid Pandemic. Lockdown hit, markets tanked, but a few months later, they bounced back, and the year ended strong.

I’ll be keeping a close eye on developments but I’m feeling optimistic that the signs are promising for 2025 and beyond. Try and avoid getting swept up in the drama. Your retirement dreams are tougher than a little market madness.

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