You might not immediately think there’s much in common between jazz music and investing. After all, one is built on creativity and rhythm, while the other is often associated with numbers and data.
However, upon closer inspection, there are some surprising similarities between the two.
With International Jazz Day taking place on 30 April, this could be the ideal opportunity to explore what the genre can teach you about managing your wealth.
So, continue reading to discover three valuable lessons from jazz you could apply to your investing efforts.
1. Sometimes, less really is more
You may see jazz as a complex genre, filled with intricate rhythms and plenty of improvisation. While this certainly is the case, another important principle in the genre is restraint.
The legendary jazz trumpeter, Miles Davis, once famously claimed, “It’s not the notes you play, it’s the notes you don’t play”.
In other words, what you choose to leave out can be just as important as what you include. This same idea can be applied to your investing efforts.
It can be tempting to take frequent action when you’re managing your portfolio. You may feel the need to react to alarming headlines, attempt to time the market, or anticipate short-term market movements.
However, constantly fretting over your portfolio isn’t always beneficial. According to the Motley Fool, Fidelity analysed clients’ portfolios between 2003 and 2013. It found that some of the best-performing portfolios actually belonged to people who hadn’t touched their investments at all.
Interestingly, many of these investors had already passed away.
This is partly because they avoided the temptation to react emotionally or try to time the market.
It’s vital to remember that it’s incredibly difficult to predict short-term market movements, and missing some of the market’s best days could significantly affect the value of your portfolio.
For instance, if you’d invested £100 in the FTSE 100 at the end of 1991 and then reinvested any dividends until February 2026, you could have grown your wealth to £1,500 over 34 years, Fidelity reports.
Missing the market’s 10 best-performing days over this period would see your growth fall to £750. Or, if you’d missed the market’s 20 best days, you’d only be left with £470.
Of course, the value of your investments can go up as well as down, and you may not get back the full amount. Past performance also isn’t a reliable indicator of future performance.
However, much like in jazz, where restraint can improve the quality of a performance, taking a more measured and disciplined approach to investing by avoiding unnecessary changes could lead to better long-term outcomes.
2. Flexibility and adaptability can be just as important as planning
Perhaps one of the most defining features of jazz is improvisation. While musicians do follow a structure, such as chord progressions or scales, they’re often given the freedom to adapt and experiment.
This means no two performances are ever exactly the same.
Importantly, this doesn’t mean jazz is unstructured or chaotic. Instead, it’s about working within a framework while remaining flexible enough to adjust when needed.
This doesn’t contradict the idea of taking a measured and long-term approach. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Rather than reacting to short-term noise, it’s about making thoughtful adjustments when your circumstances and goals genuinely change.
You may have a clear long-term plan in place, built around your goals, time frame, and risk tolerance.
However, much like a live jazz performance, life doesn’t always go to plan, and your priorities may shift over time.
For instance, you may:
- Decide to retire earlier or later than initially planned
- Welcome new children or grandchildren into the family
- Change career or reduce your working hours.
These changes could directly affect how you invest your wealth. For example, if your time frame shortens, you may decide to reduce the level of risk in your portfolio to protect your investments.
Or, if your income increases, you may choose to invest more or adjust your asset allocation.
Reviewing your investments in line with these changes could ensure your portfolio continues to reflect your current situation and long-term objectives.
3. Both jazz and investing can be complex, but you don’t have to navigate them alone
Jazz is often regarded as one of the more complex forms of music. Unusual time structures, advanced scales, and subtle shifts in tempo mean it can take years of practice to understand and appreciate what’s happening within a piece fully.
As the jazz saxophonist, Michael Brecker, once said, “Jazz is not entertainment. It’s an art dealing with complicated and subtle things”.
Investing also shares a similar level of complexity.
Markets are influenced by a wide range of factors, such as inflation, corporate earnings, and global events.
These external forces often interact in unpredictable ways, making it challenging to fully understand what’s driving short-term market movements.
This can make investing feel overwhelming, especially during periods of uncertainty.
While it is possible to research and manage your portfolio on your own, doing so can require significant time and effort.
This is where professional guidance can help.
Much like a musician might work with a teacher to better understand the nuances of jazz, a financial planner could help you make sense of markets and your investments.
We could:
- Help you understand how different economic factors might affect your portfolio
- Ensure your investments remain aligned with your long-term goals and risk tolerance
- Provide reassurance during periods of volatility, helping you avoid making reactive decisions.
Having this support can simplify what might otherwise feel like a complex and unpredictable process, allowing you to focus on your long-term financial objectives with confidence.
To find out more about how we can support you in your investing efforts, please contact us by email at info@investmentsense.co.uk or call 0115 933 8433.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
