Why Your Investment Strategy Might Need a Rethink
Investors across the UK could be exposing themselves to greater financial risk than they realise, according to Christine Benz, Morningstar's director of personal finance and retirement planning. In a recent interview, Benz highlighted several critical factors that might indicate your investment portfolio isn't as secure as you believe.
The discussion, which occurred on Tuesday 18 November 2025, revealed that many investors, particularly older adults, develop a false sense of security after experiencing market stability. Christine Benz identified age 50 as a significant milestone where investors should carefully reassess their risk exposure.
The Hidden Dangers in Your Current Approach
Benz observed concerning patterns among experienced investors. 'I sense a lot of complacency among older adults,' she noted. 'As we age and become more battle-tested in terms of market ups and downs, we feel more risk-tolerant, but our actual capacity to absorb risk has gone down.'
This disconnect becomes particularly worrying given that the last significant sustained economic downturn occurred 17 years ago, creating a generation of investors who may underestimate potential market volatility.
One of the most common mistakes Benz identified is recency bias - the tendency to believe current market trends will continue indefinitely. This is especially prevalent during bull markets, such as the one experienced over recent years despite some fluctuations.
Another critical error involves crowding into hot market sectors, particularly AI-related companies and Big Tech names. While these may represent quality long-term investments, Benz cautions against concentrating too heavily in any single sector.
Practical Strategies for Smarter Investing
For investors struggling to manage their emotions during market fluctuations, Benz offers a memorable analogy: 'Your portfolio is like a bar of soap, and the more you touch it, the smaller it's going to get.'
She recommends a disciplined approach to portfolio management:
- Conduct a comprehensive annual portfolio review
- Use an investment policy statement to guide changes
- Consider rebalancing and tax-planning opportunities
- Explore charitable giving through appreciated securities
Benz strongly advocates for a 'set-it-and-forget-it' mentality for most investors, suggesting that excessive tinkering typically diminishes long-term returns. Her guidance provides a crucial framework for UK investors seeking to build more resilient portfolios in uncertain economic times.
