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28 May 2025

  Aviva Investors

Aviva Investors: Why it pays to stay invested in the market

Author | AIQ Editorial Team

Welcome back to Bitesize, a monthly data-viz series in which we unpack market developments in a single chart (or two), giving you sharp insights in under five minutes. This month, we explore the recent gold rush, and the surprising implications of taking money out of the equity market during dips.

As markets were shaken by President Trump’s sweeping April tariffs, investors flocked to gold as a safe haven. The gold price surged 12 per cent month-on-month to a record $3,500/oz by April 22,1 driven by fears of recession, a weakening dollar and central bank stockpiling.

While gold can prove a useful asset to hold during crises, it is important to remember that market drops are a normal part of long-term investing – and there is a cost involved in taking money out of equities in response to dips.

As Figure 1 shows, every calendar year since 1989 has seen intra-year declines in global stock markets, sometimes steep ones, yet the majority of those years still ended in positive territory. It’s a powerful reminder that short-term term setbacks may be just noise, and jittery investors risk missing out on market rebounds.

Figure 1: Intra-year declines vs calendar year returns (MSCI World, 1980–2024)

Past performance is not a guide to future performance​

Source: Aviva Investors, Bloomberg. Data as of December 31, 2024.

Attempts to time the market by jumping in and out based on short-term moves often lead to missed opportunities. We examined the growth of a $10,000 investment in the S&P 500 from 1988 to 2024, and the striking impact of missing the market’s best five, 15, 25 and 40 days during this period (see Figure 2). 

Figure 2: The danger of being out of the market (S&P 500, 1988 to 2024)

Past performance is not a guide to future performance​

Source: Aviva Investors, Bloomberg. Data as of December 31, 2024. 

It’s nearly impossible to predict when the “best” days will happen. Hence the value of staying invested through the ups and downs should your investment time horizon allow it.

Of course, not every investor has the same risk appetite. Some are naturally more cautious, while others are comfortable riding out volatility. Life stage, financial goals, and personality all play a role. That’s why multi-asset portfolios are useful: they offer a way to tailor risk. By blending equities, bonds and alternatives, multi-asset strategies can help smooth the ride, allowing investors to take advantage of the benefits of staying invested even when markets wobble.

References

  1. ‘Gold takes a breather after hitting $3,5000 on higher stocks, stronger dollar’, Reuters, April 22, 2025: https://www.reuters.com/markets/commodities/gold-maintains-record-rally-following-trumps-criticism-fed-chief-2025-04-22/

Important information

THIS IS A MARKETING COMMUNICATION

Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable but, has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. Some data shown are hypothetical or projected and may not come to pass as stated due to changes in market conditions and are not guarantees of future outcomes. This material is not a recommendation to sell or purchase any investment.

The information contained herein is for general guidance only. It is the responsibility of any person or persons in possession of this information to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. The information contained herein does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it would be unlawful to make such offer or solicitation..

In Europe, this document is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon, 1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company. In the UK, this document is issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: 80 Fenchurch Street, London EC3M 4AE. Authorised and regulated by the Financial Conduct Authority. Firm Reference No. 119178. In Switzerland, this document is issued by Aviva Investors Schweiz GmbH.

In Singapore, this material is being circulated by way of an arrangement with Aviva Investors Asia Pte. Limited (AIAPL) for distribution to institutional investors only. Please note that AIAPL does not provide any independent research or analysis in the substance or preparation of this material. Recipients of this material are to contact AIAPL in respect of any matters arising from, or in connection with, this material. AIAPL, a company incorporated under the laws of Singapore with registration number 200813519W, holds a valid Capital Markets Services Licence to carry out fund management activities issued under the Securities and Futures Act 2001 and is an Exempt Financial Adviser for the purposes of the Financial Advisers Act 2001. Registered Office: 138 Market Street, #05-01 CapitaGreen, Singapore 048946. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

In Canada and the United States, this material is issued by Aviva Investors Canada Inc. (“AIC”). AIC is registered with the Ontario Securities Commission as a commodity trading manager, exempt market dealer, portfolio manager and investment fund manager. AIC is also registered as an exempt market dealer and portfolio manager in each province and territory of Canada and may also be registered as an investment fund manager in certain other applicable provinces. In the United States, AIC is registered as investment adviser with the U.S. Securities and Exchange Commission, and as commodity trading adviser with the National Futures Association.

The name “Aviva Investors” as used in this material refers to the global organisation of affiliated asset management businesses operating under the Aviva Investors name. Each Aviva investors’ affiliate is a subsidiary of Aviva plc, a publicly- traded multi-national financial services company headquartered in the UK.

 


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