The world seems to be dominated by 24-hour live rolling headlines and dramatic social media soundbites, economic shifts and market reactions seem more volatile than ever, which itself creates even more shocking headlines and sensational social media soundbites.
When political leaders, specifically Trump, make sudden policy announcements via social media or at the latest political rally, markets react almost instantly.
For those with international exposure, such as expats, investors, or property buyers - all of whom are exposed to exchange rate fluctuations, the temptation is to panic and react.
This article explores how to view these dramatic events through a calmer, more critical lens, so you can make better informed financial decisions, not fear-driven ones. This article was originally released as an Expats Unpacked podcast, recorded in May 2025 which you can watch on our YouTube channel or the video below.
When President Trump tweets, markets react
When Donald Trump introduced a wave of tariffs, the markets didn’t just flinch, they convulsed. There was an immediate shift as investors rushed to safe-haven assets.
At first, the US dollar strengthened as money flowed from equities into government bonds. Then came a pivot towards Swiss government bonds, causing a surge in the Swiss franc. This rapid cycle of reactions wasn’t random, it followed a very predictable and linear pattern.
Foreign exchange expert David Huggett, from Lucid Financial, explained in a recent Expats Unpacked podcast: “Markets behave in a very clear and linear way. When there’s panic, money comes out of equities and goes into safer assets. That’s what we call a flight to safety. But the fundamentals such as interest rates, GDP, employment data, still matter most in the long term.”
Why real-time news impacts markets more than ever
One reason market reactions feel more dramatic today is that news is now instantaneous and is updated on a 24-hour basis.
For some time there has been no buffer between political statements and public consumption. Where fact checking used to be paramount, now the rush to be first with the headline appears to matter more than reporting accurately.
A policy announcement that once would’ve taken a day to filter through newspapers now hits the market in seconds via Twitter/X, Truth Social and 24-hour newsfeeds.
This rapid dissemination affects the way we interpret change.
With Trump making huge tariff announcements and then rolling back on them only a few days later, the short term impact was significant, but the medium to long term impact was more like market noise than impact.
In Expats Unpacked conversation, David and Robert observed that “If you went hiking in Nepal for a month and came back, it might look like nothing had changed. But if you were connected throughout, you’d have seen wild fluctuations. The difference is in how much noise you were exposed to.”
This kind of “shockwave volatility” makes it much harder for the average person to discern whether something is truly significant, or just part of a temporary cycle.
The danger of reacting with emotions
The real danger lies in reacting to short-term noise as if it’s a long-term signal.
For example, if you’re buying property abroad, waiting for currency rates to improve might seem wise. But in reality, when exchange rates become more favourable, demand often increases and so does the price of the property. What you gain on the exchange, you may lose on the transaction price.
“People say they’ll wait until mortgage rates come down,” says David. “But then the property will cost more. Markets are efficient. The cost benefit usually nets out. If you're waiting for the ‘perfect time’, you may find that time never comes.”
A long-term calm strategy will normally beat a short-term immediate reaction
Patience and perspective is essential when evaluating major events and making decisions.
When you're exposed to foreign exchange markets which all expats are to varying degrees, maybe through property purchases, pensions, or investment portfolios, you're not just reacting to a single event or number. You're engaging with a complex web of interlinked systems that respond to macro and micro events, media coverage, and even public perception.
While institutional traders can capitalise on millisecond market movements, most people are better off maintaining a much longer-term view. “I believe that inside three months, it’s really just noise,” David added. “The longer the trend, the more accurate it will be. The real skill is stepping back and seeing the trajectory, not the spike.”
The importance of not acting on impulse and getting independent advice
Perhaps the most important decision making principle is that panic rarely produces good outcomes. More often than not, noise is used by unscrupulous people to pressure others into decisions they’re not ready to make.
“Financial services companies are traditionally terrible at using fear to drive urgency,” says David. “But that’s not how it should work. Imagine going to a doctor who panics you into taking action, that’s not helpful. It’s the same with financial advice. The value isn’t in having thousands of transactions. It’s in giving people time, context and confidence to make the right decisions.”
Brexit: The long-term shockwave still being felt
Unlike Trump’s tariff “roundabouts”, Brexit wasn’t just a short-term jolt, it was an irreversible shockwave. While GBP has seen some recovery, the long-term implications on trade, regulation, and financial services are still unfolding. Ever since the Brexit result in 2016, GBP is still incredibly volatile and more vulnerable to shockwaves caused by other events.
What it showed from an economic perspective is how markets and public sentiment can be manipulated, and how hard it is to predict short term (and long term) outcomes in real time.
That doesn't mean you should ignore them but it doe means you should approach them with more care, context and critical thinking.
What options do you have during these or any turbulent times (eg. through Trump’s Presidency)?
Whether you're moving abroad, transferring money internationally, or buying international property, market events like tariffs or political instability can feel overwhelming.
But most of the time, the right decision is to make no decision at all, at least not immediately, and not if it can be avoided.
Instead you should consider:
- Working with independent, trusted experts who take time to understand your goals in both the short-term and long-term.
- Step away from the noise and try to examine the long-term trends – avoiding social media and rolling news coverage will definitely help.
- Be wary of artificial urgency especially from salespeople or service providers urging you to “act now or suffer later”.
- Never forget that fear is a short-term sales tactic, not a long-term success strategy.
If you’re ever in doubt, take a deep breath and pause
We live in a world dominated by instant reaction, dramatic headlines, quick decisions and dopamine hits. But that doesn’t mean you have to operate with the same urgency.
The most powerful tool in your decision-making isn’t perfect timing, it’s informed, thoughtful planning and understanding what your long-term objectives are.
When the next shockwave hits (and there will be plenty more in the coming years), remember: real risk doesn’t come from reacting too slowly, it will come from reacting without understanding.
Take your time. Ask the right questions. And above all, don’t let other peoples’ noise drown out your judgment. If you are ever in doubt, take a breath, pause, wait and speak to someone you can trust to give you the confidence to react in the best possible way.
