Investment horizon
In a stroke of unfortunate timing, the chancellor is trying to bring a risk-averse public on board with her investment plans just as economic indicators are flashing red.
The Bank of England’s Financial Policy Committee warned in recent days that the Middle East war could prompt latent risks in the financial system to bubble up and cause significant volatility in asset prices. Governor Andrew Bailey cautioned last month that “monetary policy cannot reverse” a spike caused by energy prices.
Rising oil and energy prices could also lead to higher inflation, putting even more strain on households, according to Evelyn Partners’ chief investment strategist Daniel Casali. “Risks include rising recession odds, tighter financial conditions and higher rates,” he said.
A cyclist is pictured waiting for a green light outside the Bank of England in London on March 27, 2026. | Andy Barton/SOPA/LightRocket/Getty Images
The financial industry has already begun to call it a “polycrisis,” with higher inflation causing the Bank of England to hold off on an expected interest rate cut last month.
Amid the market tremors, Jonathan Raymond, investment manager at Quilter, called on the government to educate savers alongside the push, noting the “latest escalation has simply reminded investors that volatility is part of the cycle.”
“If policymakers want people to feel confident investing for the long term, there needs to be far more education on what volatility really represents and how markets typically behave during periods of geopolitical strain,” he said.
Meanwhile, Alex Campbell, head of external affairs at trading platform Freetrade, argued savers should look beyond the current market choppiness, as investment is a long-term goal. “Markets don’t move in straight lines. Volatility is simply the price of admission for long-term growth,” he said.
“These reforms are about building the foundations for long-term structural changes in our savings and investment culture, not timing a market cycle.”