Calming the Storm: How to Manage Investment Anxiety During Uncertain Times

Practical Strategies for Investors

Despite decades of market exposure - having weathered Black Monday in 1987, the Russian Bond Crisis in 1998, the Great Recession of 2008, and the COVID Crash in 2020 - I must confess that I still find market corrections unsettling. (And NO, I was not around for the Great Depression of 1929!). Whether driven by world events, economic shifts, or unexpected downturns, market volatility stirs emotions for investors of all experience levels. Over time, however, I’ve learned that a calm, considered approach is almost always best. Here are a few practical strategies that have helped me—and can help you—navigate turbulent markets.

Recognize That Volatility Is Normal

Over the decades, history constantly reminds me that corrections, crashes and rallies are all part of the cycle and that stocks generally trend upward in the long run. The S&P 500 has survived wars, pandemics, and financial turmoil, yet remains a cornerstone of our wealth-building strategy. Downturns are often temporary and pave the way for future growth. A short-term drop rarely leads to permanent loss.

Turn Down the Noise

It’s natural to feel nervous when you see your portfolio’s value drop, but constant news updates and market commentary can heighten anxiety.  Consider limiting your media consumption and choose a regular (but not frequent) interval for portfolio updates.  Monthly or quarterly is usually often enough.

Revisit Your Plan

A solid financial plan is built with uncertainty in mind and is your anchor in stormy markets. Whether you’re investing for retirement, a home, or your child’s education, revisiting your objectives can reinforce your time horizon and reduce the temptation to react to short-term fluctuations.  If your objectives haven’t changed, your strategy probably shouldn’t either.  

Focus on What You Can Control

While you can’t control the market, many aspects of your financial life remain under your purview.  Maintain— or even increase—your regular investment contributions and review your expenses to ensure you’re living within your means. Cutting back on nonessential spending can give you a greater sense of control and security during uncertain times.

Talk to a Trusted Advisor

If you’re still feeling anxious or second-guessing your strategy, get in touch with the Howe Team at U.S. Wealth Management.  A trusted professional can give objective guidance, help you reassess your plan, and offer reassurance in challenging periods.

Uncertain times are challenging, but they also offer opportunities to strengthen your financial discipline. Market volatility is inevitable, but panic doesn’t have to be.  By putting market movements in perspective, staying true to a thoughtful plan, and managing your emotional responses, you can not only quell your anxiety but emerge a wiser and more resilient investor.