Weathering Market Storms: How to Stay Calm When Your Portfolio Takes a Hit

This past week, the S&P 500 closed just over 15% lower than its high this summer. That means if you have a $1M investment portfolio entirely in equities, you might be staring at a $150K reduction in your net worth.

Feeling queasy?

Trust me, I get it. My stomach literally flips just thinking about the impact on my personal balance sheet. But here’s the thing—I take my financial “medicine” regularly, and that churn lasts no more than a few seconds. Seriously.

So, what’s my secret to staying sane during market downturns?

1. Stick to Your Investment Policy Statement (IPS)

I’ve been in financial counseling for decades, and if there’s one golden rule I live by, it’s this: Stay the course with your Investment Policy Statement (IPS).

Markets go up and down—it’s inevitable. History has shown us that declines happen, sometimes dramatically. But if your investment strategy is built on solid principles, these downturns are already factored into your long-term plan.

An effective IPS isn’t just a growth blueprint—it’s a roadmap that acknowledges volatility. So, while short-term losses can be painful, they’re also expected. If you dream of retiring on a beach, remember: only those who endure the market storms get to enjoy the sunny shores.

2. Cut Out the Noise: A Financial Press Detox

This next tip is life-changing. I follow a strict information diet that’s 100% free of the daily financial press.

The constant market chatter? It’s not just useless—it’s toxic. Daily updates can turn investing into an emotional rollercoaster, feeding anxiety and knee-jerk reactions. I refuse to let that happen.

Want to read something worthwhile? Turn to the classics. Graham, Dodd, Fama, French. These are the thinkers whose research stands the test of time. If you want solid, fact-based investing insights, reach out—I’d be happy to share some recommended reading.

• The Key to Long-Term Success: Stay Rational, Not Reactionary

  Investing is hard. It goes against our survival instincts. When we see market declines, we naturally want to react—to do something. But that knee-jerk response can lead you straight into the arms of the bear market.

  Don’t panic. Trust the process. The market has been through worse—and come out stronger. So will you.

  Final Thought: What’s your go-to financial “medicine” during market downturns? Drop a comment—I’d love to hear your strategies!

You can read more in the attached article.

Would You Like More Support?

---

• Do you have a well-defined Investment Policy Strategy that is used to drive your investments in support of a comprehensive financial plan?

---

• If not, would you like to partner with someone who is used to helping people get through these struggles and (then, with confidence) implement portfolio strategies in a systematic manner while focusing on your desired outcomes?

---

If so, feel free to send us an email or give us a call. We’d love to have the opportunity to help you find a bit more peace of mind when it comes to investing.

 

 

Enjoy the read and remember, it’s NOT about the money. It’s about how the money supports your goals!

Photo credit: Rawpixel on unsplash.com