By Marcus Wild, Chief Client Officer, Hive
If you've been following the news lately, it's easy to feel a bit of headline fatigue. Between shifting global dynamics and tensions in the Middle East, the world can feel uncertain. When that uncertainty shows up in financial markets, it's natural to feel concerned.
But there's an important perspective that experienced long-term investors understand: volatility isn't something to fear. In many ways, it's part of how long-term wealth is built.
The opportunity in market movements
For those investing regularly, market ups and downs can actually work in your favour.
Think of it like shopping somewhere you visit often. If you know you'll be buying regularly over many years, you wouldn't want prices to stay high all the time. The occasional sale can be a good thing.
For Hive KiwiSaver Scheme members, market dips mean your regular contributions are buying investments at lower prices. Over time, that can help build a stronger position.
It helps to think of your KiwiSaver investment like building a house from bricks.
- Each time you contribute, you're buying "bricks", or units in your investment. Over time, those bricks come together to build your house — your overall savings for the future.
- When markets dip, the price of those bricks becomes cheaper. That means your regular contributions can buy more bricks than before.
- So while the value of your house might move around in the short term, you're actually using those periods to build more of it.
And over time, more bricks can mean a bigger, stronger house.
What's behind the volatility
While volatility can create opportunity, it's still important to understand what's behind it. Right now, three key factors are driving market movements:
- Energy prices: Global tensions can push oil prices higher, which can flow through to inflation.
- Interest rate expectations: Markets are adjusting expectations around when central banks may begin lowering interest rates.
- Investor sentiment: Short-term movements are often driven by confidence and caution, rather than changes in long-term value.
These factors can create uncertainty in the short term, but they are a normal part of investing.
How Hive supports you through it
While we recognise the opportunities that volatility can bring, the focus is on helping you stay on track through all market conditions.
The Hive KiwiSaver Scheme gives you access to a range of funds from leading fund managers, each with their own investment style and strengths — so you and your Adviser can build a mix that matches your own goals and comfort with risk, rather than relying on a single approach.
Whatever mix you're in, having the right combination for your goals — and staying invested through the ups and downs — is what helps you build toward long-term wealth with confidence.
We know that market volatility can feel uncomfortable. That's completely normal. But it's worth looking beyond the headlines and focusing on what really matters — your long-term goals.
Over time, some level of market movement is not just expected, it's necessary. It's part of what creates the opportunity for long-term returns.
Think of your Adviser as your co-pilot. You don't need to react to every bump along the way, you just need to know you're on the right path. If you're ever unsure, or just want to talk things through, we're here to help. That ongoing support is a key part of the Hive KiwiSaver Scheme.
Want to talk things through?
Talk to your Adviser today or get in touch with the Hive Client Care Team on 0800 242 023 or hello@hive.co.nz.
