Insight: Staying Anchored Amid the Noise

October 2025

Ever felt uneasy after reading a headline about gold or warnings about stock prices? You’re not alone. Market conversations shift fast. Last year, tech stocks and the S&P 500 were the stars. Today, gold is grabbing headlines as the “must-own” asset. 

Why the sudden buzz? 

• Gold has surged far beyond its usual pace, catching attention.

• Concerns about high equity prices and possible corrections make investors nervous.

It’s natural to wonder if you should act. But frequent changes or second-guessing your strategy can derail your long-term plan. Whether you invest through the Waugh McDonald Portfolios, manage your own portfolio or work with another investment manager these challenges are universal. Our goal is to help you tune out the noise and stay focused on what really matters: your goals. 

Why Do We Notice These Trends? 

News is designed to grab attention. Headlines about “market highs” or “corrections coming” trigger caution. The temptation? Try to time the market. 

But here’s the truth:  

• Timing the market is extremely hard, even for professionals.

• Missing just a few of the market’s best days can slash long-term returns.

The real key is time in the market, not timing the market. Staying invested, even when things feel uncertain, is one of the most reliable ways to build wealth. 

Gold in the Spotlight 

Gold has long been seen as a safe haven. But it’s not immune to sharp swings. Recent years have shown big gains followed by steep drops. 

Our view:  

• Gold can be a useful diversifier.

• It should not be the main event.

• Chasing trends often leads to regret.

We focus on balanced, evidence-based portfolios that can weather different markets, not on chasing headlines. 

How We Build Portfolios 

The Waugh McDonald Portfolios are managed by our strategic partner Morningstar Investment Management, a global leader with over $300 billion under management. That means decades of research and a disciplined process working for you. 

Even if you’re not invested with us, these principles apply:  

• Start with your goals. Use tools like a Risk Tolerance Questionnaire to match your portfolio to your comfort with risk and time horizon.

• Diversify wisely. Spread across shares, bonds, alternatives and sometimes gold.

• Stay evidence based. Decisions grounded in research, not headlines.

• Review regularly. Keep your plan on track, no matter what the news says.

• Guard against bias. Avoid emotional moves like buying after a rally or selling after a dip.

Behavioral Bias Explainer 

Why do headlines sway us?

• We give extra weight to what’s happening now.

• We feel safer following the crowd.

• We fear losses more than we seek gains.

• We sometimes overestimate what we know. Psychologists call this the Dunning–Kruger effect: when we know a little, we often feel more confident than we should. In investing, this can lead to bold moves based on partial understanding, like chasing gold after a surge or trying to time the market.

Our role: Keep you anchored to your goals, not the latest market story. Think of us as your guide, helping you avoid costly detours and stay on the path to long-term success. 

Key Takeaway 

Let your goals, not the headlines, drive your decisions. A disciplined, evidence-based process is the surest way to lasting success. 

Bottom Line 

The news will always shout for your attention. The question is: will you let it steer your financial future? Whether you invest with us or not, your plan, built on evidence, discipline, and your goals, should always come first. 

If you ever feel uncertain, reach out. We’re here to help you stay anchored. 

Behavioral Finance Checklist: Staying Anchored in Uncertain Times 

Before making any investment decision, ask:  

1. Am I reacting to headlines or my plan?

2. Have I reviewed my goals and risk tolerance?

3. Am I trying to time the market?

4. Am I chasing winners or fleeing losers?

5. Is my portfolio truly diversified?

6. Have I talked it through with someone objective?

7. Am I acting from fear or excitement?

Tip: Keep this checklist handy. It’s your compass when markets get noisy.

Whether you’re investing through us or managing your own portfolio, having a clear, evidence-based strategy makes all the difference.
Get in touch at info@waughmcdonald.co.ke to see how we can support your long-term success.