Stock market turmoil: ‘Should I move money out of investments and into cash instead?’

This isn’t the first time the stock markets have gone into turmoil and it won’t be the last, but it is understandable that investors may be feeling tarrif-ied right now as the market turbulence continues.

While seasoned investors know too well this is a case of ‘keep calm and carry on’, recent news over the impact of Trump tariffs may have even the most thick-skinned investors jumping out of their skin.

Headlines shouting “FTSE plunges”, “S&P 500 sheds millions” or “stock market meltdown” can be understandably nerve wracking.

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Worse still, we are not over the worst yet with a trade war possibly now triggered – China today announced a 34% tariff on all US imports. But if you’re tempted to start moving things around in your portfolio for damage control, now is probably not the best time. In fact, it could damage your long-term goals.

Why should I not worry about the stock market dip?

Stock market turbulence may not seem normal, but it is in fact very common.

Remember, it was only back in 2020 when the stock market last crashed amid fears of Covid-19 spreading. At the time, we saw the FTSE 100 and S&P 500 dipping by more than 3%.

Over the last 50 years, there have been eight points where we have seen shares fall by more than 20%. But despite all this, in most cases, equities still come out well and typically give investors better returns than cash.

According to Vanguard calculations, if you invested just £100 in 1972, it would have been worth over £7,000 in 2025.

The message is: stay invested. Investing is never risk-free, but those who avoid reacting to bad news, focus on the long term and cancel out the noise, can do well.

The longer you stay in the market, the better you will do – even when the market takes a dip.

How should I invest during market turbulence?

Investing is tricky when it comes to getting it right – in fact, you should not try to time the market. Some people may try to buy during the dip as they hope they will make more money in the future.

But if you are looking for a strategy, invest regularly and consistently – no matter what the market is doing.

It’s known as pound cost averaging. This is when you pay in a set amount each month, and by drip feeding this into your investment each month, you can smooth out any volatility.

The longer you invest, the better you will do when it comes to growing your money.

Should I still get a stocks and shares ISA?

As we approach the end of the tax year, you may be feeling a little nervous about a stocks and shares ISA if you have not had one before. See our ISA guide for the types of ISAs you can have.

If you are not comfortable investing right now, you can park the money as cash in your stocks and shares ISA and decide where to invest at a later stage, or simply put your money into a cash ISA. Either way, don’t let Trump’s tariffs be the reason you do not use this year’s ISA allowance.

In the meantime, keep your finger off that investment app. Do not look!