6 tips to navigate volatile markets
When markets get choppy, it pays to have an investing plan and to stick to it.
1. Keep perspective: Downturns are normal and typically short
- Market downturns may be unsettling, but history shows stocks have recovered and delivered long-term gains.
- Over the past 35 years, the stock market has fallen 14% on average from high to low each year, but still managed gains in 80% of calendar years.

2. Get a plan you can live with – through market ups and downs

- Your mix of stocks, bonds and short-term investments will determine your potential returns, but also the likely swings in your portfolio.
- Pick an investment mix that aligns with your goals, timeframe, and financial situation, and you can stick with despite market volatility.
3. Focus on time in the market – not trying to time the market
- It can be tempting to try to sell out of stocks to avoid downturns, but it’s hard to time it right.
- If you sell and are still on the sidelines during a recovery, it can be difficult to catch up. Missing even a few of the best days in the market can significantly undermine your performance.

4. Invest consistently, even in bad times

- Some of the best times to buy stocks have been when things seemed the worst.
- Consistent investing can give you the discipline to buy stocks when they are at their cheapest.
- Consider setting a plan for automatic investmentsLog In Required.
5. Get help to make the most of a down market
- While no one likes to lose money, your financial advisor may be able to help you take advantage of a down market.
- Tax rules may let you use losses on some of your investments to reduce your future tax bills, or use lower share prices to convert to a Roth IRA at a lower tax cost.
- Down markets may also be a good time to meet with your advisor to discuss adjusting your investment mix, or taking advantage of opportunities when prices are low.
6. Consider a hands-off approach
- If you are not comfortable with market risk, consider turning your portfolio over to a professional through a managed account or all-in-1 mutual fund.
- If you don't have a strategy, or think yours may be off track, start planning now with our online tools. Or schedule an appointment with a Fidelity representative. We can help.
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