How to Weather the Storm: Strategies for Managing Market Volatility

By Angela Grannan on March 18, 2025

I don’t know about you, but I’m maxed out on worry.  Between kids, jobs, health, the environment, and the overall state of the world, I’ve just about had it.  And now, just for good measure, let’s throw in market volatility! 

So, let’s breathe, meditate, do a little yoga, and review some advice on how to weather volatile markets. 

1) Keep things in perspective.  Market downturns are a normal part of the economic cycle.  Markets can be unpredictable in the short term, but the long-term trend for equities has traditionally been up.[1]

2) Volatility can make you feel fearful.  Fear can lead us to make rash decisions.  Before making any big portfolio changes, be sure to review your purpose in investing and your long-term goals.   This is a great time to revisit your financial plan or create one with your advisor.  Review your goals, time frame, risk tolerance, and current financial situation.  We all know that life changes, so it’s always a good idea to update your plan on an annual basis.  Your plan will help you make adjustments based on your changing needs, rather than the ups and downs of the market.[2] 

3) Review your investment mix with your advisor and make sure that it aligns with your goals and timeframe. If retirement is quickly approaching, it may be time to take some risk off the table and add some income-producing investments to your portfolio. Always make sure your portfolio is sufficiently diversified and invests consistently—even in bad times when stocks or bonds are cheap.[3] 

4) Focus on time in the market rather than timing the market.   Market volatility can trigger an emotional response that can impact judgement and possibly affect your long-term plans.  If you sell and remain on the sidelines during the recovery, it can be hard to catch up.   Remind yourself of your goals and reason for investing and discuss updating your asset allocation with your advisor.[4]

5) Consider the positives and make the most of a downturn.  A volatile market may present an opportunity to take some losses to offset gains in the portfolio (tax loss harvesting). Market disruptions can be a good time to consider Roth conversions at a lower cost.  Remember, downturns can also present potential opportunities that can be beneficial over time (remember-buy low).[5]

No doubt about it, market volatility can be stress inducing! Try to stay disciplined and focused on your long-term goals.  Check-in with your advisor and review your financial plan and asset allocation to stay focused on your success. 

[1] https://www.ml.com/articles/dealing-with-the-markets-latest-roller-coaster-ride.html

[2] https://www.ml.com/articles/dealing-with-the-markets-latest-roller-coaster-ride.html

[3] https://www.fidelity.com/viewpoints/investing-ideas/six-tips

[4] https://www.fidelity.com/viewpoints/investing-ideas/six-tips

[5] https://www.raymondjames.com/-/media/rj/common/resources/investment-strategy/weathering-market-volatility.pdf