AS Jamaica heads into 2026, uncertainty is shaping how many people think about money and investing. With global markets changing quickly, many individuals are unsure how these shifts affect them personally, leading some to delay decisions or pull back altogether. That uncertainty, investment professionals say, often creates fear, and fear can cause people to do nothing at all even when taking small, steady steps would be more beneficial.

“When individuals get into a place of fear, fear results in inaction,” said Mark Gilzeane, corporate manager for group client portfolio and investment strategy at JMMB.

While speaking during JMMB’s YouTube programme Smart Investing in 2026: Stocks, Bonds and Alternatives in a Changing Market, Gilzeane explained that fear is now driving many people to spend less and become more cautious with their money. While being careful is understandable, he warns that pulling out of investments too quickly or avoiding investing altogether can hurt long-term financial goals. Instead, investors are being encouraged to rethink what financial success looks like. Rather than spending to impress others, satisfaction should come from seeing savings grow, investments increase over time and building something that can support future generations. That process starts with managing expenses. When spending is controlled, more money is left over at the end of the month, creating the opportunity to save and invest consistently.

“The first thing we have to do is get a sound knowledge foundation before doing anything,” Gilzeane said.

Having that foundation means understanding three key things: how long you plan to invest, how much risk you are comfortable with, and where to start. Licensed financial advisers, he noted, can help guide those decisions by assessing individuals risk tolerance. This refers to how comfortable someone is with ups and downs in their investments. A conservative investor may feel uncomfortable seeing a $100 investment drop to $99, even temporarily. A moderate investor understands that markets move up and down and is willing to wait for recovery. More aggressive investors are willing to accept larger swings in value in exchange for the chance of higher returns. Those differences matter because not all investments behave the same way.

“That will determine whether stocks, bonds or alternative investments are best for you to start,” he noted.

Stocks mean owning a small piece of a company. Investors can make money in two ways: When the stock price increases over time or when the company pays dividends from its profits. Bonds work differently. When you buy a bond, you are lending money to a company or government, and in return you receive regular interest payments. For people just starting out, especially those investing smaller amounts, buying individual bonds can be difficult and expensive. This is where unit trusts come in. Leo Dillon, corporate manager for group client portfolio and investment strategy at JMMB, explained that unit trusts allow investors to pool their money together.

“If you’re investing $10,000 or $20,000 a month, you can’t buy a single bond and properly diversify,” Dillon said. “A bond-related unit trust allows many investors to pool funds and gain exposure to a collection of bonds.”

In simple terms, instead of trying to buy one bond on your own, you buy into a fund (unit trust) that owns many bonds. The interest earned is then shared among all investors, giving broader exposure with less money. Turning to US investments, Dillon noted that while American markets can offer opportunities, they are also very efficient. This means prices already reflect available information, making it hard for individual investors to consistently “beat the market.”

“Because the US market is so efficient, your ability to gain an edge is extremely difficult,” Dillion warned.

For that reason, diversification is key. Rather than trying to pick individual winning stocks, investors may benefit from buying exchange-traded funds (ETFs), which hold many companies across different sectors. This helps reduce risk and smooth out losses when some companies perform poorly. Locally, Gilzeane expressed a preference for long-term stock investing. While stock prices can fall, history shows that strong companies tend to grow over time.

“Typically stocks move in an upward trajectory,” he said, noting that long-term investors generally benefit from staying invested rather than reacting to short-term market swings.

He cautioned that exceptions exist, such as company delistings or industry disruptions, but said holding solid companies over time has generally rewarded patient investors. On how often to invest, Gilzeane encouraged consistency, advising investors to contribute as frequently as they receive income. Regular investing, particularly through unit trusts, allows funds to accumulate steadily over time.