Well, 2026 is fun, isn't it? Markets have continued to lurch between optimism and fear, with headlines shifting by the day and sentiment never settling for long. We’ve written extensively about this kind of volatility but, while it can be uncomfortable, it is far from unusual.
So, rather than focusing on what markets are doing this week, I thought I’d take a different angle and focus on some common investment mistakes. Consider it a light-hearted (but pointed) countdown of the most common investment pitfalls that we see people making time and time again.
4th Place: Not investing soon enough
First up, we have the seemingly harmless “not investing soon enough”.
I can think of many examples of life being a bit upside down – it's the age-old "youth is wasted on the young" adage. When it comes to investing, time is definitely wasted on the young. The point in life when we (hopefully) have the most time ahead of us coincides perfectly with the time when we have the least money. It's the best moment of our lives to be saving/investing our money, and yet most of us have none of it (well I certainly didn't in my early 20s, having spent most of it on sticky drinks in my student union).
Even if you do have some of it, your priorities tend to lie elsewhere - buying somewhere to live, educating yourself, raising children and so on. But the minute you get to a point where you are able to put some money aside each month or each year, I would encourage people to start investing. We know how powerful compounding can be over the long term, yet by the time we realise this, rather cruelly, some of the opportunity has already passed. The lesson? I've said it over and over to thousands of clients: time is your best friend. Don't put off investing.
3rd Place: Thinking you can do it all yourself
In 2026, investing is more accessible than it has ever been. Anyone who has access to the internet can invest, with a wide range of investments options available. Vast swathes of information flow freely, and there are whole forums and media channels dedicated to helping people access stock markets.
Having said that, I can also watch a YouTube video that will teach me how to rewire my house without the help of an electrician. Does that mean it's a good idea? Methinks not. I would absolutely encourage people to educate themselves and have a dabble with money that they can afford to lose. But if you are investing a meaningful portion of your wealth, I would implore you to seek advice from an investment professional that you like and trust (wink wink, nudge nudge). The lesson? Do not invest your own money unless you know what you're doing.
2nd Place: Underinvesting
I know, I know, cash is safe and comfortable and makes us all feel warm and fuzzy. It's predictable and liquid and doesn't keep us awake at night. Don't get me wrong here, cash definitely has a place as part of your overall financial position, but if you want to be a successful investor, it can't be your sole asset.
When I talk to clients about understanding investment risk, a lot of the conversations revolve around encouraging clients to take on enough risk. It can feel unnatural and daunting at first but if you have a long timeframe for investment (for example in a pension or "future pot"), not taking on enough investment risk would be reckless.
The chart below shows the performance of a global index versus cash over a long timeframe. Yes, the blue and yellow lines are choppier and over short periods the outcome can be negative, but if you have a decent timeframe, say 10+ years, you have to push yourself to take the risk. Being underinvested means inflation will eat away at your savings and, simply put, by the time you retire you won't be able to buy as many bananas as you can today. The lesson? Make sure you're taking enough risk to protect yourself.
1st Place: You
Drumroll please… When it comes to investing, the harsh reality is that, quite often, we are our own worst enemy.
Years ago, Fidelity carried out a now-infamous study that looked at the best-performing portfolios across their business and the results were telling. The best returns were achieved by two sub-sets of clients: people that had died (awkward) and people that had forgotten they’d invested. Now, I don't know exactly how much money you need to have to your name in order to forget that you've invested, but the point is that these investors, albeit unconsciously, had left their portfolios invested for long periods of time. They hadn't panicked and sold during market wobbles, they hadn't de-risked their portfolios, and they hadn't stressed themselves out looking at their investments every day (admittedly all of these are quite tricky from beyond the grave). They had invested in good assets and left them be. The lesson? Trust the process.
In periods like the one we’re in now, where markets feel unpredictable and headlines are doing their best to keep us on edge, it’s easy to get caught up by the thinking that investment success is about timing, insight or reacting to the latest bit of news. But, as this little countdown hopefully shows, it’s far more about avoiding a handful of common (and very human) mistakes.
If any of this resonates, or if you’ve been putting off investing because markets feel a bit “too uncertain” right now, now could be the perfect time to invest. Feel free to get in touch with our team, who will be happy to help.
