Adrian Murphy

Moving into 2026 feels like a psychological milestone. We’re well past a quarter of the way through the century, the second half of the decade, and more than five years out from the pandemic. A great time, then, to take stock of the world and assess where you are with your long-term financial plans.
 
From an investing perspective, there has been no shortage of events that have rocked stock markets since the turn of the millennium. The dot-com bubble burst in March 2000, leading to the Nasdaq index dropping as much as -77%. After markets recovered, the 2008 financial crisis knocked more than -50% off the S&P 500 in the space of 18 months.
 
In the following years there was little respite – the Greek debt crisis, Brexit, conflicts on mainland Europe, several cryptocurrency bubbles, Covid, and the failure of major banks all had their impact at different points. We’ve even had a fair dose of uncertainty this year, with the prospect of a global trade war leading to major market falls in the spring.
 
When you list all of these, it sounds like investing in stocks and shares should have been a disaster for people looking to build their wealth. But ignoring the noise and staying the course would have seen you rewarded with a 612% total return from the S&P 500 since 2000, equivalent to an average of 7.98% per annum.
 
Yet, Scotland, and the UK as a whole, remains a nation of cash savers. According to the latest available data from HMRC, the number of cash ISAs has risen to 9.94 million – up 2.1 million on the previous 12 months. By contrast, the number of stocks and shares accounts only increased by 283,000 to 4.09 million.
 
A large part of the reason for this stark difference is the perceived safety of cash and the risk associated with investing, much of which stems from the headlines generated by events like the ones I’ve mentioned. But the reality is that what cost £1,000 in 2000 would be £1,919 today, meaning the real value of cash has been more or less cut in half, and the average cash ISA has returned just 1.79% per annum since 2010.
 
With reform to ISA contributions just over a year away – reducing the cash allowance to £12,000 – and the government is clear it wants more people to invest their savings, this year is the time for more people to look at investing. The direction of travel is clear and, as more people are dragged into paying a higher tax rate and allowances are squeezed, the reasons to invest – whether through an ISA or not – are racking up.
 
We can’t predict what will happen in the future, let alone how 2026 is going to shape up. But, even if there’s another market dip ahead, as long as you remain disciplined, invest what you’re comfortable with on a regular basis, and don’t react to events, you should reap the rewards in the long term.
 
There will always be short-term worries, but markets have consistently found a way to bounce back – as Warren Buffet has maintained throughout his 80 years of investing: time in the market always beats timing the market. So, whatever 2026 brings, make long-term, evidence-based investing a part of your financial plan or the year.

Adrian Murphy is CEO of Murphy Wealth