How to keep your cool during market uncertainty

Learn how to avoid making emotional decisions when markets get choppy.

January 20, 2022

How to keep your cool during market uncertainty

Both big and small swings in the market are regular parts of the investing experience. So it’s important to be mindful of your reactions to these ups and downs and take a beat before making drastic money moves.

Here are a few things to keep in mind as you ride the stock market roller coaster.

Keep perspective

Downturns are normal and expected. On average since 1926, stock prices have dipped every 6 years with losses averaging almost 40%. *

But zoomed out to the full picture, we can see that the market has recovered each time and gone on to reach new heights.

Invest consistently

You can avoid making emotionally driven decisions by setting up monthly recurring investments. This helps ensure you stick to your plan, no matter what the market is doing!

That way when things start to get chaotic, you can remind yourself that you’re staying focused on your goal instead of the short-term volatility.

Take a break

Finally, if you find yourself stressed, anxious, and constantly checking in on how your investments are doing, consider taking a break (that's if you don't need your money right away).

Just like the saying “A watched pot never boils,” watching stock prices drop won’t bring them back up. Instead, do something that you enjoy! Get outside, watch a movie, or take a nap. You’ll likely find it’s a better use of your time.