What if markets go sideways forever?
7th November 2025
Equities are 'supposed' to climb over time. And bonds are 'supposed' to provide ballast. Yet, what happens when markets do neither? In a world of flat, sideways performance - neither raging bull nor crashing bear - traditional investments often leave investors disappointed. For advisers, this raises a question: how do you generate value in a 'stuck' market?
A scenario worth considering
The FTSE 100, for all its reputation, has had long stretches of sideways movement in the past two decades. Clients see headlines about 'record highs', but the reality is a bit less exciting for them. Their portfolios might even feel a bit stagnant once dividends, inflation and volatility are all factored in.
These sideways markets are eroding client confidence, and you may be asked 'why am I paying to take risk if nothing's happening?'
Enter range-bound strategies
Structured products are one of the few tools that can actually monetise stagnation. Digitals, autocalls, and other popular product types are built for environments where:
- The market drifts without breaking out in either direction.
- Volatility is present, but not catastrophic.
- Traditional growth or income plays leave investors dissatisfied.
Why does this matter for advisers?
Being able to have converations about making money even if markets go nowhere will resonate well with your clients who are tired of waiting for momentum. It positions you as proactive: not simply hoping for growth, but tailoring your client's strategy to suit different market regimes
Markets don't always roar higher - or collapse dramatically. Often, they just... drift. For advisers, the rabbit hole worth exploring is how to make that drift work in your client's favour. Structured products, far from being a niche, may be one of the most useful tools that turns market stagnation into strategy.