By Steve Seals
At the moment, it may feel like the current market volatility is the byproduct of some of the sweeping changes that are underway. That may be true, but the bigger truth is that market volatility has always been a challenge to investors.
You may have noticed some market swings in your portfolio balance recently. You may even have some right to be concerned about certain investments. But the bigger picture should offer some relief. In its 233 years of existence, the New York Stock Exchange has remained resilient in the face of all obstacles.
It’s okay to have jitters. However, experienced investors have survived market volatility by taking some proven strategies and approaches to stay afloat and reap future rewards. Here are some steps you can take.
Prioritize Long-Term Diversification
As of February 2025, the S&P 500’s five-year return stood at 101.6%, above its long-term average of 46.76%. Both figures support the benefits of staying steady with investments, even in shaky times. To get through those periods of market volatility, shrewd investors rely on diversification.
Diversification simply means allocating your investment funds across a wide variety of commodities. You can diversify your holdings across different business sectors, market caps, and geographical regions. You can invest in a mix of stocks, bonds, real estate, and alternative investments.
The driver of diversification is risk mitigation. If your holdings in a certain area are in a temporary downturn, they may be offset by other holdings that are doing well.
Seize on Market Pullback Opportunities
Few if any investors talk about finding something positive in market downturns. It’s always fair to feel anxious. However, even in times of market volatility, there may be some hidden prospects for potential profits.
Professional investors use market dips to find traditionally valuable stocks at lower costs. If you rely on your employer’s 401(k) plan, that’s exactly what its management team does when the market is slow. Companies with strong, long-lasting fundamentals and positive track records are the ones most likely to bounce back and resume solid growth when the market improves.
Turbulence can be scary, but it’s something analysts build into their long-term views. In fact, the stock market historically experiences a 10% decline roughly every year. If you can get a traditionally proven stock winner at a discount, you may reap rewards later.
Continue Building Your Emergency Fund
Financial analysts recommend that investors keep an emergency fund. The going rule is to have three to six months’ worth of living expenses in savings in case of job loss, a health emergency, or another income-threatening event. Beyond these situations, an emergency fund also serves as a safe harbor during market volatility, providing a stable reserve (and source of comfort) that helps investors weather downturns without resorting to panicked, knee-jerk investment decisions.
Stay the Course
Discipline is the key to surviving market volatility. Periods of decline, even extended ones, are part and parcel of the stock market’s history. The one thing they have in common is that they all ended. The market goes through many ups and downs, but investment decisions made from a standpoint of fear or impatience rarely lead to positive long-term results.
Even if the market is rising and falling, a disciplined and principled approach beats emotional or impulsive investing. Stay on board.
Financial Support During Market Volatility
It’s easy to take stock market shakiness personally. But you’re never alone when the investment market hits a speed bump—every investor endures the same experience. The ones who approach downturns with a calm, methodical approach are most likely to emerge unscathed or even stronger.
Seals Financial Planning & Investments can help you build that resilience. When you contact our office, you’ll speak with a financial advisor with experience turning everyday people into solid investors with hopeful futures.
Please give us a call at (859) 230-3476 if you would like to schedule a time to meet.
About Richard Stephen (Steve) Seals
Steve Seals is owner and independent Registered Investment Advisor Representative at Seals Financial Planning & Investments VI, LLC, a financial planning services firm based in Lexington, KY and the U.S. Virgin Islands. As an independent Registered Investment Advisor Representative with about two decades of experience in the investment and insurance industries, Steve’s firm is founded on getting to know each client personally, allowing him to provide sound financial advice throughout their career and into retirement. With the mission of guiding clients on the path of success, Steve is fueled by his commitment to excellence and goes the extra mile to make sure clients are fully satisfied. He believes in maintaining a positive mindset, creating partnerships with a purpose, and always striving for significant outcomes.
Born in Jenkins, Kentucky, Steve grew up with a love for basketball and serving his community. After high school, he served nine years in the United States Marine Corps, then earned a bachelor’s degree in accounting. He was eventually able to put his degree and desire to help others to work as a fiduciary financial planner. Prior to founding his own firm in 2014, Steve learned from working with Edward Jones, US Bank, University of Kentucky Federal Credit Union, and CUSO Financial. He also received his Security Series 63 and 65/66 through Keystone Financial Group, LLC, and holds various life, health, and variable insurance licenses.
Steve and his wife, Angie, have three daughters (Lauren, Peyton, and Ashton) and two grandsons (Kenyon and Kai). Steve holds a private pilot’s license, and the family enjoys sports, spending time at the lake, and traveling. To learn more about Steve, connect with him on LinkedIn.
