Ramadan and Market Volatility: Should We Advise You to Invest?

Ramadan and Market Volatility: Should We Advise You to Invest? The month of Ramadan introduces us to deeper concepts of investment. In it, we learn that our true wealth is in our hands, and that our investments can be much more comprehensive than the numbers reflected in our bank and investment accounts. Ramadan is a golden opportunity to grow our wealth in religion, health, family, relationships, and peace of mind. Regarding financial investment, it's natural to feel uneasy about the general situation when you hear what's happening around the world with stock markets falling due to external political situations and global economic conditions. So it's your right to wonder: Should I continue with my goal and invest my monthly savings that I deduct from my salary? Should I pause until the situation calms down? Should I take advantage of the market downturn and double my investment? What is the right decision?

To make the right decision, it's essential to understand the following: What's happening in the market? Since February 20, stock markets have been fluctuating, retreating, and falling due to many factors, most importantly: The US President's decisions to raise tariffs on Canada and Mexico by 25%, increase tariffs on China from 10% to 20%, impose tariffs on European countries, and other decisions that shake the stability of global markets.

And the result? • The US market index (S&P 500) is down 4.59% from the beginning of 2025 until today. • The Dow Jones Industrial Average is down 2.46% from the beginning of 2025, but it's holding up a bit. • The Saudi market index (TASI) is down 3.29% from the beginning of 2025. And other examples of global indicators that say there is turmoil in stock markets, decline, and general concern, but

What's the other side of the story? In economic history, the occurrence of these events is a sign of new investment opportunities, because the market returns stronger afterward. The conscious investor seizes the market downturn and invests at the lowest prices (seeing it as a discount period). While the amateur investor (or speculator more accurately) panics and moves to sell their shares and investments due to momentary emotion without looking at the bigger picture.

COVID-19 bears witness The COVID-19 pandemic is the biggest example in recent history that testifies that after hardship comes ease! At the beginning of 2020, after the announcement of the spread of COVID-19 and the implementation of precautionary measures, there was a sharp decline in global markets, and the stock market collapsed! The S&P 500 index (the largest stock market index in the world) fell about 34% in March 2020, followed by stock markets in most countries of the world. But what happened a few months later turned the tables! The market began to recover quickly and rose again to levels higher than before the collapse and recorded new record levels within months in 2020!

The current situation and your portfolio performance? We understand that you don't have the time and dedication to follow market news and analyze it to study the impact of what's happening on your investments, and this is the right behavior, because you are an investor, not a speculator. If you were a market speculator, you would care about instant news and its impact on the performance of the stock market and on the performance of your investments. But as an investor, you don't care about instant news, because you know that investment is a long journey, and in the end, the market grows and returns grow with it. But we want to reassure you that the Tamra Financial team is here! Our strategy is built on the principle of investing with minimal risk, and our portfolios follow the "MMM" concept, which we will simplify for you in the next section.

The "MMM" concept, your trusted shield: Simply put: Tamra Financial portfolios are built on the concept of a diversified balanced portfolio that reduces your risks while increasing your returns in the long term, how? Our portfolios do not rely on investing in one type of asset or one financial market, but on the contrary, we rely on diversifying your investments in different global markets. This means we don't depend on the performance of one sector or a specific geographic region. This guarantees you less volatility, because if there are fluctuations in a particular market or asset, the diversified assets in the portfolio help reduce the risks to its performance so that your investment is not significantly affected by the decline of any one of the assets or markets in itself. Simply put, our diversified balanced portfolios act as a shield that protects you from market fluctuations and guarantees you a more stable investment journey and growth.

The role of Tamra Financial experts The role of our financial experts focuses on monitoring performance and rebalancing the proportions of assets and markets in client portfolios periodically to ensure that their investments remain aligned with their long-term financial goals and grow continuously with minimal risks.

In conclusion:

1. Don't let the news distract you: The market goes up and down and this is normal, emotional and unstudied reactions increase the likelihood of exposure to loss. The phrase we always repeat is "Crises are transient, and markets are always rising" and this is what history has proven!

2. Seize the opportunity and focus on the goal: You are an investor, not a speculator. If you invest every month for a (long-term) goal, this is a golden opportunity for you to buy at a cheaper price, and you'll thank yourself later, because you're simply averaging the cost to you (what does cost averaging mean? Don't worry, we'll explain it to you in another article!).

3. Rest assured: Our specialized team is keen on growing your wealth, so all you have to do is give us your trust, focus on achieving your other goals, take advantage of the blessed month of Ramadan, and enjoy the most beautiful months of the year.