Markets Roller Coaster: Resist the Urge to Make Big Changes
You could do more harm than good if you react emotionally to the markets' volatility. Instead, consider tax-loss harvesting, Roth conversions and how to prepare for next time.


Storms are inevitable. We just don’t always know when or where they’ll hit. The same is true for the markets. Some downturns strike suddenly, while others build slowly on the horizon.
Right now, we’re in one of those moments. Tariffs, Fed policy uncertainty or economic shocks — whatever the catalyst, market volatility is back. Emotions run high, headlines are everywhere, and the urge to act can be overwhelming.
But making big changes during turbulent times can often do more harm than good. The key isn’t reacting, it’s responding with intention.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Check your emotions before your investments
One of the biggest lessons I’ve learned in my career is that an investor’s real risk tolerance emerges when the market plummets. It’s easy to feel comfortable with risk when stocks are rising, but when things turn, some investors realize, Wait a minute, I didn’t sign up for this.
That’s when emotions take over, and costly mistakes happen. If you’re taking on more risk than you can truly handle, you’ll find out at precisely the wrong moment, when losses feel bigger than expected, and panic sets in.
The COVID-19 market drop is a perfect example. In just six weeks, stocks plunged more than 30%, and many felt like there was no way forward. Some investors sold at the bottom, telling themselves they’d get back in when things “felt better.”
But by the time that moment came, the market had already recovered. History shows that some of the best market days come right after the worst ones, making timing the market nearly impossible.
Don’t panic: Do this instead
If you’re feeling uneasy, you’re not alone. But before making any sudden moves, ask yourself:
- Can I stomach this kind of volatility and stay invested?
- Is my current risk level still appropriate for my goals?
- Have I made changes based on emotion rather than long-term strategy?
If the answer to any of those questions gives you pause, don’t rush to overhaul your plan. This is a moment for reflection, not reinvention.
Market declines, while uncomfortable, also bring opportunity. You might consider tax-loss harvesting, reinvesting dividends at lower prices or simply staying the course while others lose their footing.
A well-built investment plan should already account for volatility, and this is the time to let that plan do its job.
How to prepare for the next one
If this downturn has rattled you, use that feeling as fuel — not to panic, but to plan. Once markets stabilize, take time to reassess your financial setup:
- Is your asset allocation still aligned with your goals and risk tolerance?
- Are you holding enough cash to weather short-term needs without having to sell long-term investments at a loss?
Think about how you responded this time:
- Did you stay the course or lose sleep?
- Did you feel steady or exposed?
Your answers can guide the adjustments you make now, while the experience is still fresh.
This is also a smart time to revisit the fundamentals. Make sure your emergency savings are adequate, your portfolio is diversified, and your investment strategy leaves room to act strategically when others are panicking. Tools like tax-loss harvesting or Roth conversions can be especially useful in volatile markets.
Market drops will happen again. The goal isn’t to avoid them, it’s to build a plan resilient enough to ride them out and flexible enough to turn uncertainty into opportunity.
A solid plan means you don’t have to panic
You can’t control the markets, but you can control how you respond. And that starts with a plan grounded in both numbers and mindset. If you’ve taken the time to align your investments with your goals and emotional tolerance, you don’t need to panic during a drop.
Instead, you can move through the uncertainty with confidence, knowing you’ve built a strategy that’s designed to hold steady — not just in good times, but through the turbulence, too.
Because real financial security isn’t about avoiding the storm, it’s about knowing you’re prepared to face it.
Signature Estate & Investment Advisors, LLC (SEIA) is an SEC-registered investment adviser; however, such registration does not imply a certain level of skill or training and no inference to the contrary should be made. This material is for informational purposes only and is not intended as individual investment advice or as a recommendation of any particular security, strategy or investment product. Investment decisions should be made based on the client’s specific financial needs, objectives, goals, time horizon and risk tolerance. Financial markets are inherently volatile and all investment strategies, including those perceived as low-risk, carry some level of investment risk. Past performance does not guarantee future results. Financial success is influenced by various factors, including the client's investment objectives, risk tolerance, time horizon, and market conditions. There is no guarantee that any investment strategy will achieve its intended results. All investments carry inherent risks, including the potential loss of principal. Prospective and current advisors and clients should carefully consider their investment objectives, risks, charges, and expenses before making any investment. SEIA is not responsible for the consequences of any decisions or actions taken as a result of the information provided herein. In particular, none of the examples should be considered advice tailored to the needs of any specific investor. Securities offered through Signature Estate Securities, LLC member FINRA/SIPC. Investment advisory services offered through SEIA, 2121 Avenue of the Stars, Suite 1600, Los Angeles, CA 90067, (310) 712-2323.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Frank Legan is a Cleveland-based author and a Financial Adviser with SEIA. Frank spends his days designing and implementing personalized financial planning strategies for corporate executives, business owners, artists, families and retirees. He focuses on lifetime income planning strategies, investment advice and estate planning services. He also works with businesses to develop strategic and succession planning strategies.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
Retire in Finland and Live the Nordic Dream
Here's how to retire in Finland as a US retiree. It's ideal for those who value natural beauty, low crime and good healthcare.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
After the Disaster: An Expert's Guide to Deciding Whether to Rebuild or Relocate
Homeowners hit by disaster must weigh the emotional desire to rebuild against the financial realities of insurance coverage, unexpected costs and future risk.
-
A Financial Expert's Tips for Lending Money to Family and Friends
What starts as a lifeline can turn into a minefield if the borrower ghosts the lender. Following these three steps can help you avoid family feuds over funds.
-
Stock Market Today: Good Feelings and Solid Data Lift Stocks
Resilience and de-escalation defined another generally positive day for financial markets.
-
Should You Ditch Your Medicare Advantage Plan? Most People Do
If you want to switch your Medicare Advantage plan or enroll in original Medicare, you're not alone. Here's when it's a good idea and how to go about it.
-
The 401(k) Mistake That Could Cost You Millions in Retirement Savings
Thinking about reducing your 401(K) contributions in the current market? Here are six reasons why you may want to reconsider.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.