In the morning, you check the headlines and see the market has dropped overnight. By lunch, it’s rebounded, but by dinner, it’s dipped again. It’s a cycle that can leave even the calmest investor feeling anxious. In moments like these, it’s tempting to make quick decisions, like pulling out when things look bad, with the hope of jumping back in when they seem good. But letting fear drive your investment choices can lead to costly mistakes. Instead of reacting to market volatility, staying invested with a long-term plan is often the most effective way to build lasting financial resilience.
Market volatility is the frequent and sometimes dramatic ups and downs in the market’s value over brief periods. Short-term factors like new economic reports and sudden geopolitical events can shift investor sentiment and drive these fluctuations.
While these movements can feel unsettling, they are a natural part of the investing landscape. Instead of letting fear drive you to react to every market swing, focus on what truly matters: your financial plan. Your plan should be anchored on long-term goals like retirement, education or legacy giving, not daily headlines. Because it’s designed to weather storms over the long run, your focus should remain on the long-term view.
It’s natural to want to “do something” when markets get rocky. But timing the market — jumping in and out based on fear or headlines — can be costly.
Consider this: If you had invested in the S&P 500® from 2005 to 2024 but missed just the 10 best days in the market, your returns would have been cut by more than 40%. Even more surprisingly, those best days often come not long after the worst ones. If you’re out of the market during a downturn, you’ll likely miss the rebound too.
This is why staying invested is so important — even when it’s uncomfortable. While past performance doesn’t guarantee future results, the market has proven resilient over time. When evaluated over the long run, the market has been friendly to investors, yielding far more positive returns than negative ones.
So, how do you stay the course when the market feels like a roller coaster? Keep these three principles in mind:
Don’t let short-term noise keep you from hitting your long-term goals. Selling during a downturn locks in losses and risks missing the recovery. Staying invested puts you in a position to potentially benefit when the market rebounds.
A well-diversified portfolio helps smooth out the ride. When one part of the market struggles, another may hold steady or even thrive. Diversification doesn’t eliminate risk but can help manage it by spreading exposure across different asset classes and sectors.
Regular investing takes advantage of dollar-cost averaging, helping you accumulate more shares when prices are lower. Think of it as buying financial assets while they’re on sale.
Volatility is normal. It’s not a sign that something’s broken — it’s a feature of the market. The key is understanding your risk tolerance and ensuring your investment allocation is in sync with it. Everyone’s comfort level with risk is different, and that’s OK. What matters is having a plan that fits your long-term goals and sticking to it.
Even the most seasoned investors can get rattled during turbulent times. That’s where a trusted financial advisor comes in. An advisor can bring objectivity, experience and a steady hand. They can guide you in staying focused on your goals and avoiding emotional decisions.
When markets fluctuate, it’s easy to feel uncertain. However, experiencing volatility is a regular part of investing and shouldn’t derail your long-term strategy. Staying focused on your financial goals, rather than reacting to short-term noise, can help you move forward with confidence. If you have questions or want to review your strategy, we’re here to help.
For more information, contact us at Info@GuideStone.org or 1-888-98-GUIDE (1-888-984-8433), Monday through Friday, from 7 a.m. to 6 p.m. CT.
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• Sep 25, 2025 