It's often said that company earnings, sentiment and capital flows drive financial markets. But sometimes exactly who owns the underlying investments plays a bigger role than is generally acknowledged.

This week's chart shows equity ownership – the percentage of the population who hold shares, either directly or via investment vehicles such as pension funds – by country.

It's no surprise that the US tops the list by a wide margin. Americans are more heavily invested in their stock market than citizens of any other major economy. This matters, particularly when we consider political decisions like tariffs. With so much of the public's wealth tied up in markets, policymakers have a natural incentive to backtrack on policies that have a negative impact on those markets. We’re seeing this play out at the moment, with the US administration rolling back its harsher import tariffs.

We live in a fast-moving world, in which markets react to news in seconds. This can be both a blessing and a curse.

Take the recent ‘Liberation Day’ tariff announcement. It sparked global consternation and triggered a sharp sell-off in equity markets. But in today’s fast-moving markets, things can turn positive just as quickly.

Just 25 trading days after that low, the Nasdaq had rallied an astonishing 24.5%. We’ve only seen something comparable twice in the past two decades, in April 2009 (after the Great Financial Crisis) and April 2020 (after the COVID crash). In both instances, that explosive rally signalled a return to what then proved a durable market bottom.

Is this another one of those moments? Perhaps. Donald Trump's softer stance on tariffs has helped to calm the waters. And, despite recent volatility, tech companies have performed strongly – with the usual suspects once again being viewed as the safe haven play.

But the bigger point here isn't about calling the bottom. It's about staying grounded.

With real-time access to everything – from the value of your pension to the latest market headlines – it's easy to be swept away by fear. Yet, if you were happy to buy an investment at higher prices, shouldn't you be even more interested when prices fall?

Key investment considerations, such as company fundamentals, innovation and long-term growth potential haven't gone away. It's just harder to focus on them amid all the noise.

Key takeaway

This is why I keep my phone as uncluttered as possible – very few apps, very few distractions. The most critical investment decisions aren't made on a screen. They're made with a clear mind and a long-term perspective.

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This article is provided for general information purposes only and should not be construed as personal financial advice to invest in any fund or product. These are the investment manager’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.