How to Handle Market Volatility Without Losing Your Way
If your portfolio has felt like a roller coaster lately, you’re not alone.
Markets have been climbing toward record highs in 2025. But the ride hasn’t been smooth.
Consider the S&P 500, a stock market index that tracks the performance of 500 of the largest publicly traded U.S. companies. In April, it dropped more than 10% into correction territory after the announcement of steep new tariffs.
Between policy surprises, geopolitical headlines, and rapid shifts in investor sentiment, volatility is back in the spotlight.
At Valiant, we’ve helped people navigate the markets for over 25 years. We’ve seen our share of ups, downs and everything in between.
So what should you do when the market dips – or soars – unexpectedly?
Here’s how to stay grounded and make smart decisions during uncertain times.
Key Takeaways
Market swings are normal. Even in volatile years, the market often ends in positive territory, so staying invested matters.
Don’t let emotions drive decisions. Regret, fear and overconfidence can lead to costly mistakes. A long-term plan helps you stay grounded.
Retirement plans need flexibility. A smart withdrawal strategy and cash reserve can help you weather downturns without selling low.
You don’t have to go it alone. Working with a fiduciary advisor can save you time, reduce stress and keep your strategy aligned with your goals.
1. Don’t Let Regret Run the Show
It’s natural to dwell on missed opportunities, like the stock you sold too early or didn’t buy when you had the chance. This is called regret minimization, and it’s one of the most powerful (and sneaky) forces in investor behavior.
You might think: “I bought this stock at $30, then it went to $50. Now it’s back at $40. Should I hold, sell, or buy more?”
These feelings are valid, but they’re not always helpful.
Nobel Prize–winner Daniel Kahneman helped pioneer the field of behavioral economics, which studies how people make financial decisions. One of his key findings? We’re often irrational, especially when emotions are high.
It’s normal to feel anxious during market swings. But it’s how you respond that makes the difference between staying on track and veering off course.
A common trap: believing “this time is different.” That thinking can cloud your judgment and lead to short-term decisions that conflict with long-term goals.
Consider this: From 1970 to 2024, the S&P 500 delivered an average annual return of nearly 11%. Through wars, recessions, inflation spikes and political upheaval, the market has proven resilient.
Instead of asking, “How do I undo this?”, a better question is: Does this investment or strategy still align with my goals and time horizon?
2. Focus on the Long-Term Terrain
Market drops are a normal part of investing. Since 1980, the S&P 500 has experienced an average intra-year decline of about 14%. Yet, in 34 of those 45 years, the market still finished the year with a positive return. That’s roughly 75% of the time!
JP MORGAN ASSET MANAGEMENT GUIDE TO THE MARKETS
What matters most isn’t avoiding every decline, it’s how you respond.
Trying to time the market can backfire. That’s because some of the best days tend to come right after the worst. If you miss just a few of those key rebound days, your long-term returns can suffer significantly.
For example, this chart shows the performance of $10,000 investment in the S&P 500 over a 20-year period. Missing just the 10 best market days halved the annualized return; missing the top 40 days led to a negative return.
JP MORGAN ASSET MANAGEMENT, GUIDE TO RETIREMENT
Bottom line: Staying invested, especially through the rough patches, can lead to better investment outcomes.
3. Revisit Your Investment Strategy
Volatility is a good time to ask:
Are my investments aligned with my current goals?
Has my timeline or risk comfort changed?
Do I have the right balance between stocks, bonds and cash?
If you’re unsure, that’s what we’re here for. At Valiant Standard, we work with you to build a portfolio aligned with your long-term goals, income needs and how you prefer to invest, not the ups and downs of the day.
4. Manage Retirement Withdrawals with Intention
For those in or near retirement, market declines can feel especially unsettling. After all, your portfolio may be your primary source of income.
That’s why we emphasize the importance of having a retirement plan designed to weather market swings. A common strategy includes keeping a 1–2 year reserve of cash or liquid assets, which allows you to avoid selling investments at a loss during downturns.
We also recommend a flexible withdrawal approach so your income can adapt to market conditions when needed.
Beyond that, personalized planning around taxes, Social Security, pensions and required minimum distributions (RMDs) can help you make the most of your income sources. When structured thoughtfully, your retirement plan becomes a buffer against volatility.
5. Don’t Go It Alone
If you’re unsure how current events are affecting your investments or your retirement plans, let’s talk.
A recent Vanguard survey found that people who work with a financial pro save a median of 100 hours a year by outsourcing some or all of their financial tasks.
At Valiant Standard, we don’t try to predict the market. We focus on helping you make informed, confident decisions based on your goals and what’s in your control.
Ready for a clearer path forward?
Let’s review your portfolio, walk through your retirement plan or just talk through your options. Schedule your consultation with Valiant today. Schedule a call with us at the time that works for you at: https://calendly.com/harvey-reiner-at-valiant-standard/30