How Selma protects your investments when markets get rough

But here's what we've seen: while global stock markets dropped sharply, many Selma portfolios have managed to soften the blow. Losses were still visible, but significantly less severe than in many traditional equity portfolios or single ETFs.

Let's take a closer look at what happened – and how Selma's investment approach is built to handle times like these.

What caused the market dip?

The recent volatility started when the U.S. announced broad new tariffs. These measures led to nervous reactions.
Within days after the tariffs were announced, global markets plunged by nearly 10% – one of the sharpest short-term drops since the 2008 crisis. Some sectors, like technology, saw drops of nearly 20% within days after the tariffs, far steeper than the overall market decline.

Markets have since recovered, but the situation remains unpredictable.

What helped cushion Selma's portfolios?

Selma doesn't try to predict short-term market movements. Instead, we focus on managing risks through diversification and by regularly adjusting portfolios through rebalancing and adapting them to each client's financial life.

This includes:

• Investing across different asset classes — not just stocks, but also bonds, real estate, precious metals, and more
• Spreading investments globally, not just in one region
• Making regular adjustments based on market data and your personal risk profile

This diversified setup helped soften the impact of the downturn. In particular, gold played a stabilising role. While global stock indices dropped, gold prices surged — reaching an all-time high of $3,500.05 per ounce on April 22. This helped limit the overall decline in portfolio value for many clients.

Why smaller dips make a big difference

When markets drop sharply, it's totally normal to feel worried. No one enjoys seeing their investments lose value – even if they know it's part of the journey.

But let's quickly look into why it's important to minimise your losses instead of only looking towards gains: how much a portfolio drops will shape how quickly it recovers – and how you feel along the way.

Let's say your portfolio drops by 10%. You "only" need an 11% gain to get back to where you were. But if it drops by 50%? You'd need more than 100% to recover, as you will have a smaller base to start earning returns on again. 🤯

That's why Selma's approach focuses a lot on softening the blows. By reducing how hard your portfolio gets hit during a downturn, we help keep your investments more stable – and make it easier to recover faster when markets bounce back.

There's another important side to this: your mindset. Smaller losses are easier to sit through. You're less likely to panic, pull money out at the wrong time, or lose trust in your long-term plan. 

Is now a good time to invest more?

Market dips can feel discouraging, but they can also be an opportunity. Historically, times like these have often turned out to be good entry points for long-term investors.

That said, it's not about timing the market. It's about making sure your investment decisions fit your financial situation.

So, before investing more, ask yourself:

• Do I have a solid cash buffer set aside that can cover emergencies?
• Can I leave this money invested for at least a few years?
• Does increasing my investments fit my current financial situation?

If you're unsure, the Selma app shows your individual deposit plan and how much might make sense to invest right now — based on your investment potential.

Staying calm pays off

Turbulent markets are a part of long-term investing. The key isn't to react to every headline — it's to stay focused on your individual strategy, and trust that your portfolio is designed to manage ups and downs.

Selma's role is to help with exactly that:

✅ Building a globally diversified portfolio
✅ Monitoring risks
✅ Keeping your investments aligned with your life