Staying the Course in Volatile Times: A Smarter Approach to Investing
If you’re feeling overwhelmed by the sheer amount of change and uncertainty in the world right now, you’re not alone. The headlines are relentless in their coverage of market volatility, political turmoil, the impact of AI advancements, natural disasters, economic uncertainty, global conflicts—and the list goes on. It’s easy to feel like the ground beneath your feet is shifting, especially when it comes to your investments.
The instinct to “play it safe” by pulling out of the market and retreating to cash or other perceived safe havens is understandable. However, before making any drastic moves, it’s important to step back, take a deep breath, and look at the bigger picture. Historically, staying the course has proven to be the more prudent approach for investors.
The Cost of Timing the Market
It’s tempting to think you can avoid losses by pulling out of the market when things feel uncertain and jumping back in when conditions improve. However, as research shows, consistently timing the market is impossible.
A recent Vanguard analysis underscores the risk of missing just a few of the market’s best-performing days, which often come right on the heels of downturns. Investors who remain fully invested over the long term tend to see better returns than those who attempt to move in and out of the market. Emotional investing can lead to costly mistakes.
Principles for Navigating Volatile Markets
Rather than reacting to short-term noise, consider these strategies to help you stay the course with confidence:
Diversification—Spreading Out Risk: A well-diversified portfolio can help cushion against market swings. Investing in a mix of asset classes—stocks, bonds, and alternatives—reduces the risk of any single event derailing your long-term plan.
Focus on the Long Term: Market turbulence can be unsettling, but history shows that markets tend to recover over time. Keeping a long-term perspective helps put short-term volatility into context.
Avoid Emotional Investing: It’s natural to feel anxious when markets drop, but making impulsive decisions often leads to selling low and buying high—the opposite of what you want to do. A disciplined approach helps prevent costly mistakes.
Rebalance, but Don’t Overreact: Reacting to every market swing by making drastic changes can do more harm than good. However, periodic rebalancing can help your portfolio stay aligned with your investment goals by adjusting the mix of assets back to your intended allocation.
Work with a Fiduciary Financial Advisor: One way to avoid emotionally driven investing decisions is to work with a fiduciary financial advisor. A fiduciary is legally obligated to act in your best interest, providing objective guidance tailored to your financial goals. Beyond helping you maintain a well-diversified portfolio, a trusted advisor can offer behavioral coaching—helping you avoid panic-driven mistakes and stay on track toward long-term success.
Stay the Course, Stay Confident
It’s normal to feel uneasy when times feel uncertain. But when it comes to investing, staying invested, maintaining a diversified portfolio, and resisting the urge to make emotional decisions have historically led to better outcomes.
At Parkshore Wealth Management, we understand the concerns that come with market volatility, and we’re here to help you navigate it with clarity and confidence. If you’re feeling uncertain about your investments, let’s have a conversation about how to keep your financial future on track—without letting fear dictate your decisions.
Schedule a complimentary, 15-minute chat with a fee-only, fiduciary financial advisor today to discuss your personal situation.
This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor with offices in Granite Bay and Folsom, CA, and Lehi and Logan, UT. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.