The 5 Steps to Thriving in Volatile Markets

Whenever the U.S. stock market hits a rough patch, it’s hard to escape the relentless reports of doom and gloom. Turn on the television or radio, or surf the web and you’re confronted with worrisome headlines that bemoan every dip and dive in the markets. The constant drone of bad news, stoked by an endless 24-hour news cycle, creates a high level of worry and anxiety that is simply hard to withstand. Right now, those worries are in overdrive thanks to high inflation as well as stocks’ and bonds’ rocky start to 2022.

Once such force-fed fear sets in, it’s natural to want to sell your investments that are declining in value and park your portfolio in “risk-free” money markets. But if you pull out of stocks when they are falling, you put yourself in the cross-hairs of another risk—being left behind when the markets inevitably rebound.

At Adviser Investments, we recognize that sitting tight and “staying the course” is far easier said than done. We also know that learning how to manage your emotions in rough markets is the key to long term success. We want to share evidence that will help you practice one of the most important investing rules: Patience, not panic, wins the day.

We have distilled our philosophy for navigating rough markets into five key steps. Knowing how wealth is created over the long-term will give you the confidence and insight to make wise decisions during periods of market volatility.