Three survival tips for investing in a bull market
Bull markets and wild price swings can be exciting, but good investing habits are what compound over time.
If you've only started investing in the last few years, today's market backdrop can feel confusing.
Markets are hitting highs, optimism is back, and every second headline seems to promise the next big thing. What we're in right now is broadly described as a bull market - a period of sustained rising prices, improving sentiment and growing confidence among investors.
Globally, equities have been trending higher since the market lows of late 2023, meaning we've been in this upswing for close to two years. Bull markets don't move in a straight line, but they are typically supported by improving economic growth, easing inflation pressures and expectations that interest rates are closer to peaking than rising.
Where things can get confusing is around the different actions of central banks around the world. For example, in Australia we have just experienced our first rate hike since 2023. Meanwhile, in the US the talk is around rates potentially coming down.
What makes this environment particularly challenging is the sheer amount of noise.
Markets now react instantly to economic data, central bank commentary, earnings results and geopolitical developments.
News travels fast, narratives shift quickly, and sentiment can flip in days, sometimes hours. Ongoing geopolitical tensions, election cycles and policy uncertainty add another layer of volatility, reminding us that markets are forward-looking but not always predictable. Sharp pullbacks can occur even in strong bull markets, often without warning. For newer investors, this can feel unsettling.
But volatility isn't a sign that something is broken. It's the price of admission for long-term returns.
This environment is often described as "risk-on". That means investors are more willing to take risk, favouring shares over cash, growth assets over defensive ones, and higher-risk segments of the market in search of returns. Risk-on periods can be rewarding, but they can also encourage behaviour that undermines long-term success.
Bull markets don't end because people stay disciplined. They end because people abandon the process.
Here are my three tips for investing when markets are moving quickly.
1. Tune out the noise
Bull markets amplify everything: headlines, social media chatter and emotional decision-making. The real risk isn't missing out but reacting to every market wobble or hot tip. A practical habit is to reduce how often you check your portfolio and to be selective about where you get information.
Long-term investing is about consistency, not constant action. Creating some distance from the noise makes it easier to stay focused on your goals, make calm decisions, and let time and compounding do the work.
2. Stick to your plan
Decades of research show that asset allocation explains far more about investment outcomes than picking the right stock. Diversifying across asset classes, sectors and geographies matters more than trying to outsmart the market.
Long-term investing is not linear and even the best designed portfolios will experience drawdowns. Thoughtful asset allocation acts like a seatbelt during turbulence. It won't stop the bumps, but it's there to protect you so you can stay invested and reach your destination over time.
If your portfolio only works when markets are rising, it's not a strategy. It's a position.
A clear allocation framework also helps remove emotion from decision-making, providing discipline when markets test our patience and our confidence. By spreading risk intentionally, investors improve their resilience, reduce regret, and increase the likelihood of sticking to their guns through inevitable periods of uncertainty.
3. Don't confuse a rising market with a rising risk tolerance
Bull markets make investors feel braver than they really are. It's all fun and games until the price drops, right? Be honest with yourself about how much risk you can handle.
The more important question isn't how much risk you're comfortable with emotionally, but how much risk you can actually afford to take.
Strong returns can hide problems and tempt investors to push too far.
Thinking about timeframes, income security and cash needs upfront makes it far easier to stay the course.
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