Market Noise, Market Falls and the Case for Unlisted Assets

Written by Steve Landers & Shara Cox

Markets rarely move in a straight line. At times, economic uncertainty, political events, interest rate speculation, media headlines and investor sentiment can all create noise that leads to short-term market falls. While these periods can feel uncomfortable, they are a normal part of investing and do not automatically mean that your long-term strategy is broken.

Why Market Noise Can Drive Market Falls

Market noise refers to the constant stream of short-term news, commentary, predictions and price movements that influence investor behaviour. This may include:

  • Daily share market fluctuations

  • Media predictions about recessions or market crashes

  • Political events and policy announcements

  • Interest rate speculation

  • Social media commentary and investment trends

These events can cause markets to fall quickly, even when the long-term fundamentals of a quality investment strategy remain intact. The challenge for investors is separating genuine changes in value from temporary shifts in sentiment.

The Problem With Reacting to Every Fall

When listed markets fall, the daily pricing of shares, property securities and other traded assets can make volatility feel immediate and confronting. This often triggers emotional decision-making, with some investors tempted to sell after prices have already fallen or move to cash at the wrong time.

The risk is that short-term noise can lead to long-term damage. Investors who frequently adjust their portfolios in response to headlines may miss the recovery that follows downturns and reduce the compounding benefits of staying invested.

Bypassing the Noise Through Unlisted Assets

One way to reduce the day-to-day impact of market noise is to include exposure to unlisted assets where appropriate. Unlisted investments, such as private equity, unlisted infrastructure or private credit are not traded on public exchanges each day. As a result, their values are generally less influenced by daily market sentiment and short-term headlines.

For suitable investors, unlisted assets may provide:

  • A smoother return profile compared with daily priced listed assets

  • Exposure to real assets such as property, infrastructure and income-producing investments

  • Additional diversification beyond traditional shares and bonds

  • The potential for more stable income streams

  • A way to remain focused on long-term outcomes rather than daily market movements

Unlisted assets are not risk-free and they are not suitable for everyone. They can have lower liquidity, longer investment timeframes and different valuation risks. However, when used carefully as part of a diversified portfolio, they can help investors reduce the emotional pressure that comes from watching listed markets move sharply from day to day.

When Should You Review Your Portfolio?

Market falls alone do not necessarily mean that action is required. However, they can be a useful reminder to review whether your portfolio is still appropriately diversified, whether you are too reliant on listed markets, and whether unlisted assets could play a role in improving the balance of your investment strategy.

Before making any investment decision, consider asking yourself:

"Am I reacting to market noise, or would a broader mix of assets better support my long-term goals?"

Staying Invested, But Investing Differently

Successful investing is not about avoiding every market fall. It is about building a portfolio that can withstand uncertainty and continue working toward your long-term objectives. For some investors, this means looking beyond listed markets and considering assets that are less exposed to daily trading noise.

Contact the Salt Financial Planning team today to review your portfolio and explore whether unlisted assets could help reduce the impact of market noise on your long-term investment strategy.

Jenni Anderson