Profile Perspectives: Smart Steps in Stormy Markets

The market has been a rollercoaster lately, and for many investors, it’s been hard to stay calm. One of my clients, a retired woman who usually enjoys diving into her investment research, recently admitted that she felt overwhelmed—emotionally drained, even. The market’s volatility, combined with the chaos in the world, had shaken her confidence and left her questioning every decision. She sat across from me, shoulders slumped, struggling to find clarity. Her story isn’t unique; in times like these, even the savviest investors can feel stressed and unsure. But there’s a way to navigate these turbulent waters with confidence. 

When Market Chaos Shakes Your Confidence 

During our conversation, I could see the weight of the market’s recent swings bearing down on her. She was a seasoned investor, someone who usually thrived on the excitement of researching stocks and watching trends. But this time, she was different. She told me, “Doug, it’s hard to make any decision right now. I’m feeling so down about what’s happening in the market and the world.” She was wise to acknowledge it—many people struggle to recognize when their emotions are clouding their judgment, especially when it comes to their money. 

I reminded her that it’s perfectly normal to feel this way. When markets are volatile and headlines are unsettling, it’s easy for emotions like fear, anxiety, or even a sense of hopelessness to take over. These feelings can make us act impulsively or, worse, paralyze us into inaction. But the first step in making sound investment decisions—even in the face of stress—is simply recognizing that your emotional state could be influencing you more than you realize. 

The Power of Small Steps 

After she expressed her concerns, I knew we needed to take a step back and assess both her portfolio and her mindset. We found one stock in her holdings—a company we’d been optimistic about in the past but had recently taken a sharp downturn. She admitted that the original reason she bought the stock no longer made sense to her, and the position was causing her undue stress. I asked, “Why keep a company if you wouldn’t buy it today?” 

We agreed to sell it, a small tactical move that immediately lightened her load. It wasn’t just about reducing her exposure to that single stock; it was about taking a deliberate step to regain a sense of control. There was a bonus, too: the sale of the stock at a loss provided a tax advantage by offsetting gains from other, more successful investments. This way, we achieved two goals—easing her emotional burden and optimizing her portfolio’s tax efficiency. 

By taking this simple, strategic action, she felt a little more at ease. It wasn’t a complete solution to all her worries, but it was a step in the right direction—a reminder that even in turbulent times, there are always small moves that can make a big difference. 

 Your Advisor Wants to Hear from You 

As we wrapped up our conversation, I encouraged her to keep the lines of communication open. “Let’s talk again in a few days,” I suggested. “Whether you feel better or not, we can revisit where things stand.” For many investors, this is one of the most valuable aspects of working with a financial advisor—knowing that you have someone in your corner, ready to listen, strategize, and support you through the ups and downs. 

We often think of our portfolios as numbers on a screen, but they’re deeply connected to our lives, our emotions, and our sense of security. When the world feels uncertain, those feelings can magnify, making it harder to think clearly. That’s why having regular conversations with your advisor can be so beneficial. It’s not just about adjusting the portfolio; it’s about understanding your own tolerance for risk, your goals, and how external factors are affecting you. 

If market stress is weighing on you, it’s time to take action. Check out Stress Less: Transform Your Investment Approach Today by clicking here. Explore how you can regain control of your finances and find clarity—because peace of mind is always a smart investment.  

Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of this website, Portfolio Resources Group, Inc. or its affiliates. Nothing in this article is intended to be investment, tax, or legal advice. Information in this article is gathered from sources considered reliable, but we cannot guarantee their accuracy. Past performance is no guarantee of future returns.