‘I’m an investment expert – the smartest move you can make amid Iran-US crisis’ | Personal Finance | Finance

An investment expert has offered crucial advice amid the ongoing conflict in the Middle East. The war has triggered volatility, with global markets experiencing sell-offs and prices surging due to fear of supply disruptions.

Despite most people assuming the worst when markets wobble, Nouran Moustafa, practice principal and independent financial adviser at Roxton Wealth, believes the situation offers an opportunity for savvier investors. Ms Moustaga has urged investors not to panic or make “emotional decisions” such as selling in fear of losing money. She also reiterates the need to differentiate between planning issues and market issues.

Ms Moustafa told the Daily Express: “In times like this, it’s easy to think something has gone badly wrong. But in reality, markets moving up and down is completely normal. And for savvier investors, it’s also an opportunity, as lower prices mean they can “buy the dip”.

“Markets can — and do — turn very quickly, and that is exactly why investing should never be built around the idea that calm conditions will last forever.

“It’s also worth remembering that volatility is not a sign that investing is broken. It’s simply what happens when uncertainty, news headlines and investor emotions all collide.

“One of the biggest mistakes investors make in these periods is confusing discomfort with danger. A difficult week or two in markets does not automatically mean a long-term investment plan is wrong.”

According to the expert, oil prices are “soaring” due to the conflict, with Iran suggesting they will send them as high as $200. As a result, the Volatility Index (VIX), often dubbed Wall Street’s “fear gauge”, increased by nearly 50% last week.

Morgan Stanley previously warned that supply disruptions in the Strait of Hormuz could lead to higher oil and gas prices. Meanwhile, escalation in the war could lead to higher defence spending, which will impact long-term bond yields.

Ms Moustafa added: “The biggest risk during volatile times is often not the market itself, but how people react to it. Panic is expensive. When investors make emotional decisions during market swings, selling in fear or making rushed changes, those are often the decisions they regret later.”

The expert stressed the importance of having a “good portfolio” with a diverse range of investments across asset types and sectors. She explained how strong investment portfolios can survive volatile periods.

She said: “That’s where proper financial planning comes in. Investing is not just about chasing the highest returns. It’s about making sure your investments match your personal goals, your time horizon and how comfortable you are with risk.

“Not every geopolitical shock requires a big change to your portfolio. Sometimes the smartest move is simply avoiding a bad one — or doing nothing at all.

“During volatile periods, my advice to investors is to review, not react. Look at your overall strategy, your investment mix and your cash reserves.”

She suggested trying to resist the urge to change your investments if nothing in your personal life, including goals or need for money, has changed. Market volatility is a common part of investing and should not result in panic.

Ms Moustafa said: “Volatility is also a test. It tests portfolios, but it also tests how comfortable investors really are with risk. Many people feel comfortable when markets are rising. The real test comes when markets fall and negative headlines dominate the news.

“This is why discipline matters more than trying to predict the market. The investors who tend to do best during turbulent periods are not the ones making dramatic moves. They are the ones who stay calm, stay diversified and stick to a well-thought-out plan.”