Navigating Volatile Markets: 6 Expert Tips to Stay on Track in Turbulent Times

Volatility is an inevitable part of investing, and it’s something every investor—whether novice or seasoned—must learn to navigate. Market fluctuations, corrections, and even bear markets can test our resolve, stir emotions, and tempt us into making decisions that may harm our long-term financial goals. But with the right mindset, strategies, and tools, it’s possible not just to weather market storms, but to emerge stronger on the other side.

As a financial advisor and investing expert, I want to share six critical tips to help you stay grounded and make informed decisions in uncertain markets. Whether you’re preparing for your first downturn or you’ve seen your share of cycles, these strategies will help you stay focused and in control.

1. Keep Perspective: Market Downturns Are Normal

First and foremost, remember that downturns are part of a healthy market cycle. Historically, U.S. stocks experience about three downturns of 5% per year, one correction of 10% per year, and one correction of around 15% every three years. While these declines can be unsettling in the moment, history shows that markets are resilient and have consistently recovered over time.

It’s essential to view market downturns not as failures, but as expected events that long-term investors must endure. In fact, without volatility, there wouldn’t be the premium returns that stocks have historically delivered. Long-term investors who stayed the course during downturns were often rewarded with strong recoveries.

Takeaway: Avoid panicking during pullbacks. Instead, remind yourself that short-term volatility is the price we pay for long-term growth.

2. Get a Plan You Can Live With—Through Ups and Downs

Your investment mix—how much you allocate to stocks, bonds, and short-term assets—plays a major role in how your portfolio performs and how much it fluctuates in value. Finding the right mix starts with understanding your goals, time horizon, risk tolerance, and overall financial situation.

The key is to have a plan that you believe in and can stick with, even when markets get rocky. A portfolio that’s too aggressive may lead to sleepless nights during downturns, while one that’s too conservative might fall short of your growth needs.

If you haven’t reviewed your asset allocation in a while, consider revisiting it with your advisor to ensure it still aligns with your needs—especially during volatile periods.

Takeaway: A well-designed, personalized plan can help you stay disciplined and avoid reactive decisions that could derail your long-term strategy.

3. Focus on Time in the Market—Not Timing the Market

One of the most common—and costly—mistakes investors make during volatility is trying to time the market. While it may feel like a smart move to sell and “wait for things to settle,” the reality is that missing even a few of the best-performing days can drastically reduce your long-term returns.

Market recoveries often come quickly and unexpectedly, and by the time most investors feel confident enough to reinvest, the market has already moved on. Studies have consistently shown that long-term investors who stay invested—even during downturns—outperform those who try to jump in and out.

Takeaway: Instead of trying to outsmart the market, commit to staying in it. Consistency often beats timing.

4. Invest Consistently—Even During the Worst Times

One of the best strategies during volatile markets is dollar-cost averaging—investing a fixed amount of money at regular intervals, regardless of market conditions. This approach forces you to buy more shares when prices are low and fewer when they’re high, potentially lowering your average cost over time.

Some of the most favorable opportunities to invest have historically come during times of fear and pessimism. By staying consistent and investing automatically—even when it feels uncomfortable—you can take advantage of these periods rather than avoid them.

Setting up automated contributions to your retirement accounts or brokerage accounts is a great way to stay disciplined and remove emotion from your investing decisions.

Takeaway: In investing, sometimes the worst times feel like the worst, but act like the best. Consistent investing can pay off in the long run.

5. Get Help to Make the Most of a Down Market

Downturns, while challenging, can also open the door to unique financial planning opportunities—especially when guided by a financial advisor.

For example:

Tax-loss harvesting: Selling investments at a loss to offset gains and potentially lower your tax bill.
Roth IRA conversions: Converting traditional IRA funds to a Roth IRA while asset values are lower, which could reduce your tax cost on the conversion.
Rebalancing your portfolio: Shifting funds back to your target allocation can lock in gains from outperforming assets and buy undervalued ones.
Your advisor can also help you reevaluate your investment mix or take advantage of opportunities created by falling prices—strategies that may be difficult to execute or even recognize on your own.

Takeaway: Don’t go it alone. Your advisor can help turn down markets into strategic opportunities for growth and tax efficiency.

6. Consider a Hands-Off Approach If Needed

Not everyone is comfortable watching their portfolio fluctuate, and that’s perfectly okay. If market volatility makes you anxious, consider handing the reins to a professional through a managed account or an all-in-one mutual fund or target-date fund.

These options are built and rebalanced by experts who manage risk according to your goals and timeline. They provide peace of mind and remove the burden of managing your portfolio during periods of uncertainty.

Additionally, if you don’t currently have a strategy—or if your existing one feels off track—this is a good time to reassess. Many firms offer online tools to help you plan, evaluate your risk tolerance, and start building a personalized investment strategy.

Takeaway: If managing investments on your own is overwhelming, take advantage of professional management or automated tools to stay on course.

Final Thoughts: Stay the Course with Confidence

Volatility is never pleasant, but it doesn’t have to be paralyzing. With the right mindset, a solid plan, and consistent actions, you can navigate even the most turbulent markets with confidence. Remember:

• Downturns are normal.
• A personalized plan is your anchor.
• Time in the market matters more than timing the market.
• Consistent investing can turn volatility into opportunity.
• Strategic advice can make a down market work in your favor.
• Hands-off options can provide peace of mind.
• Investing is a marathon, not a sprint. If you stay focused on your long-term goals and make informed decisions, you’ll be well-equipped to ride out the storms—and reap the rewards on the other side.

If you’re feeling unsure about your current strategy or want to explore how you can take advantage of today’s market environment, now is the time to talk to a trusted advisor. Let volatility be your teacher, not your enemy.

Need help building a resilient portfolio? I’d be happy to guide you.