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Let Markets, Not Headlines, Do the Heavy Lifting
Hoxton Blog • Let Markets, Not Headlines, Do the Heavy Lifting
The turn of the year is a time of new beginnings. But there are some things which have remained the same.
Donald Trump’s antics are a prime example.
We are just two weeks into 2026, and he has already launched a military strike on Venezuela and captured President Nicolás Maduro and his wife Cilia Flores.
At the same time, global markets are once again being forced to digest developments coming out of Washington, particularly around the Federal Reserve and its leadership.
Alongside the events in Venezuela, Trump has escalated his feud with Federal Reserve chair Jerome Powell, turning central bank policy into a political flashpoint.
Powell is now under criminal investigation by the U.S. Department of Justice, related to his testimony before the Senate banking committee in June last year, regarding renovations to the Fed’s historic office buildings in Washington DC.
In a statement on Sunday, Powell argued he had been threatened with criminal charges because the Federal Reserve had set interest rates based on its best assessment of what would serve the public, rather than following the preferences of the president.
The independence of the Federal Reserve chair, and of the institution itself, has therefore become a central part of the wider political narrative.
Trump has repeatedly blasted Powell and the Fed for declining to bow to his demands for rapid rate cuts and has launched an aggressive campaign to curtail the central bank’s longstanding independence and exert greater control over its decisions.
For investors, this ongoing tension between the White House and the Federal Reserve is not just political theatre, but an example of how monetary policy can become entangled with short term headlines.
On the opposite end of the good and bad news scale, Samsung saw its share price jump last week as it announced that it expects record profits in the fourth quarter as demand for AI chips soars.
These are the kind of stories that dominate financial news feeds and social media, mixing geopolitical risk, Federal Reserve policy drama and corporate earnings into a constant stream of updates.
They feel urgent and important, but for most long-term investors they are better treated as background noise than as a reason to rip up a carefully built plan.
What the News Really Tells Us
Samsung’s reporting cycle always attracts attention because it is a global bellwether for technology, smartphones and semiconductors.
A strong set of numbers can spark enthusiasm about AI, chips and consumer demand; a weaker one can trigger worries about slowing growth or over optimism in tech.
At the same time, headlines about the Federal Reserve chair, interest rate pressure and political interference can create anxiety about inflation, growth and the future direction of monetary policy.
The truth is usually more balanced: companies go through good and bad quarters, central banks adjust policy gradually, and share prices move as expectations evolve.
The situation in Venezuela, whether discussed in terms of politics, oil production, sanctions or currency issues, is another reminder that individual countries can face real instability.
There will always be regions experiencing stress at any given time, just as others are improving. Markets process this constantly, with prices moving as expectations shift, including expectations about interest rates set by the Federal Reserve.
For a diversified investor, all of these stories matter in context, but none should dominate decision making. They are examples of how the world is always changing, not signals that the basic rules of long-term investing have suddenly been rewritten.
Noise Versus Long-Term Signal
Short term news can be distracting because it comes with strong narratives: “Is this the end of the tech boom?” or “Will political pressure on the Federal Reserve derail markets?” Headlines are designed to grab attention, not to build portfolios.
Acting on every story, good or bad, can lead to:
- Chasing what has just done well, such as buying into tech right after a strong Samsung report.
- Panicking out of positions when central bank or geopolitical news hits the front page for the wrong reasons.
Over time, this behaviour tends to hurt returns and increase stress. Long term wealth is usually built by staying invested through many different news cycles, including multiple Federal Reserve chairs, presidents and policy regimes, rather than trying to dodge each one.
Why Diversification is Your Shock Absorber
A globally diversified portfolio is designed with events like Samsung’s earnings, Federal Reserve policy debates or Venezuela’s troubles in mind.
It accepts that:
- Individual companies will have volatile quarters.
- Central banks will adjust policy as conditions change.
- Specific countries will go through political and economic turbulence.
By spreading money across regions, sectors and asset classes, no single company, country or Federal Reserve decision can dictate overall outcomes. Tech exposure does not rest on one stock.
Emerging market exposure does not rest on one government. Bonds, cash and other assets sit alongside equities, so that not everything moves in the same direction at the same time.
This kind of diversification means that the impact of any one headline is cushioned. You can acknowledge that a Samsung result, a Federal Reserve announcement or a Venezuela update matters in the world, without feeling that your entire financial future is tied to it.
Financial Discipline in a Noisy World
The real edge for long term investors is not secret information; it is discipline. That means:
- Sticking to a clear plan based on your goals and time horizon, not on this week’s Federal Reserve headlines or political developments.
- Rebalancing periodically rather than reacting daily, so that positions are trimmed or topped up in a measured way.
- Continuing regular contributions even when the news feels uncomfortable, allowing you to buy more units when prices are lower.
Discipline is what turns diversification from a theory into a real-world strategy. It is also what helps you step back from the noise and ask, “Does this story genuinely change my long-term plan, or is it just another headline in a long series?”
Let Markets Digest the Headlines For You
Samsung’s earnings, Federal Reserve policy disputes and Venezuela’s problems will not be the last big stories of 2026. There will be more, some positive, some negative. Trying to respond to each one is exhausting and rarely effective.
A better approach is to:
- Build a well-diversified portfolio that includes global equities, bonds and, where appropriate, other assets.
- Use a sensible mix of active and passive strategies, so professionals can adjust exposures at the margin while core holdings capture global growth, regardless of who occupies the Federal Reserve chair.
- Review your plan on a schedule, for example annually, rather than every time a notification pings on your phone.
In that framework, news becomes information rather than a call to action. Markets will adjust Samsung’s price, reprice Venezuelan risk and incorporate Federal Reserve decisions as they occur.
Your job is not to outguess every move, but to stay committed to a long-term, diversified strategy that can absorb those changes and still carry you toward your goals.
And you don't have to do it alone. If you’d like to discuss your financial plan or portfolio, please contact your Hoxton Wealth adviser.
You can also reach our client services team at client.services@hoxtonwealth.com or via WhatsApp on +44 7384 100200.
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