Should You Move Your Money? What 1,006 Investors Are Doing Now
Although markets have calmed since the U.S.-Iran de-escalation, investor sentiment tells a different story. A recent MarketWise survey of 1,006 American investors found that 79% are worried the next geopolitical headline could erase the market's recent gains, while 72% say positive news feels too fragile to act on.
Here's what investors are doing with their money amid ongoing market uncertainty and what it could mean for your portfolio.
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Most Investors Are Holding Steady Despite Market Worries
Despite feelings of uneasiness, most investors aren't making any changes to their investments. The survey found that more than half of investors are holding their current positions (53%) and 51% haven't moved a single dollar in the past 30 days.
“Doing nothing can be a smart decision when it means sticking to a diversified, long-term plan rather than reacting to geopolitical headlines," said James Royal, senior writer at MarketWise.
However, staying invested and staying frozen are not necessarily the same thing.
"One danger is that ‘holding steady’ may actually mean leaving too much money in cash, pausing retirement contributions or avoiding routine rebalancing because of fear," Royal said. "Investors should ask whether their portfolio still matches their timeline and risk tolerance and not whether the next headline gives a reassuring feeling."
For investors with retirement goals decades away, missing months of contributions could be more damaging than simply riding out ordinary market volatility.
Investors Who Move Money Are Making Small Portfolio Changes
Among the nearly half of investors who have moved money recently, most moves were relatively modest rather than an overhaul. According to the survey, 18% moved 5% to 10% of their assets, 16% moved less than 5%, 11% moved 11% to 25%, 3% moved 26% to 50% and only 2% moved more than half of their holdings.
“Small adjustments are generally healthier than big portfolio shifts because they reduce the risk of making an all-or-nothing decision at the wrong time," Royal said. "Moving 5% to 10% can restore an investor’s intended balance, raise a modest cash reserve or reduce an uncomfortable concentration without abandoning the long-term strategy."
Royal said major portfolio changes are typically better reserved for major life events, such as retirement, job loss or a significant shift in financial goals, rather than short-term developments in the news cycle.
"Cautious rebalancing gives investors room to respond without turning market anxiety into long-term damage,” he added.
Few Investors Are Taking More Risk After Geopolitical Tensions Ease
While geopolitical tensions have eased, most investors remain cautious. Just 6% of investors say they've taken on more risk, while 28% have moved toward safer assets or cash.
“Neither taking more risk nor moving heavily into cash is automatically the better move," Royal said. "The right answer depends on exactly when the money will be needed."
Investors nearing retirement or planning for significant expenses may reasonably increase allocations to cash or high-quality bonds. Younger investors with stable income and long investment horizons, meanwhile, may benefit from continuing diversified stock purchases and staying focused on long-term goals.
"Don’t treat easing geopolitical tensions as a buy signal or fear as a sell signal," Royal explained. "Risk should be set by goals, liquidity needs and time horizon, not by whether one week’s headlines sound calmer.”
What Investors Want To See Before Taking More Market Risk
Many investors say they need stronger economic signals before they're willing to invest more aggressively. When asked what would give them more confidence to invest more aggressively, the following answers varied widely.
27% want clear signs inflation is falling
14% want lower energy prices
11% want a lasting ceasefire
9% want a Federal Reserve signal on rate cuts
7% want a sustained rally
Notably, 31% said nothing would make them confident enough to invest more aggressively right now.
“Investors waiting for confidence should define it with a small data dashboard rather than a feeling," Royal said. "Include several consecutive inflation readings moving toward the Federal Reserve’s target, evidence that wage growth is outpacing household costs and a clear trend in interest-rate policy. One inflation report, one Fed meeting or one week of lower oil prices is not enough."
Rather than waiting for a single headline or economic report, Royal said investors should focus on trends that persist across multiple months.
"Even then, they should not wait for perfect conditions because markets often move before the economic news feels comfortable," Royal explained. "A better approach is to invest gradually on a schedule and use those signals to adjust the pace."
What This Means for Your Investment Strategy
The survey suggested that while many investors remain uneasy about geopolitical and economic uncertainty, most aren't making dramatic portfolio changes.
For many Americans, the more important question isn't whether markets feel calm today but whether their investment strategy still matches their goals, time horizon and risk tolerance. Market headlines may be a reason to review your portfolio, but they shouldn't be the primary reason to abandon a long-term plan.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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