Watching news reports about tariffs this year may have led to a rise in the number of cases of whiplash.
One day, tariffs were happening. The next day, they weren’t. They were going to be raised to astronomical levels — or maybe not.
Markets struggled to keep up with the ever-changing tariffs news cycle. And investors, perhaps especially retirees, didn’t know what to make of it and were probably unsure what to do.
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If nothing else, this year has been a good reminder that, when it comes to investment decisions, we need to set aside our emotions, take a deep breath and focus on long-term plans, rather than reacting to the anxiety or excitement of the moment.
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Know the risks you are taking
Letting market fluctuations dictate your investment moves is not the best strategy for long-term financial success.
There will always be another headline, another weather event, another geopolitical crisis that grabs attention and sends the markets tumbling or soaring, depending on the situation.
React emotionally and your portfolio, as well as your future retirement, is likely to suffer.
To avoid allowing emotions to prompt you into making questionable moves, be sure you have a good understanding of how your money is invested.
This is especially important if much or all of your retirement money is being saved through a 401(k) account at work.
Someone who buys shares of a specific stock likely knows risk is involved. Someone who puts money in a CD probably knows they have made a relatively safe investment.
But people aren’t always aware of the level of risk they are taking with their 401(k), usually because when they enrolled they simply chose a fund with pre-selected investments.
As the years passed, they left things as they were, even if what was a good choice when they were 35 or 40 might not be the best choice when they are 55 or 60.
Regardless of whether your investments are in a 401(k) or elsewhere, get clarity about those investments and know the risks you are taking.
You will be better prepared to weather those market ups and downs, unlike someone who thinks they have little risk and is caught by surprise when their account balance plummets.
Ups and downs are the norm
While no one wants to see their investment’s value drop, those who understand the market and view things from a wider perspective are in a better situation mentally when those unsettling moments occur.
To prepare yourself for undesirable market trends, it helps to have some historical knowledge. Look at the last 80 years, going back to the end of World War II.
What we’ve seen since then is that about every one to two years the market experiences a correction, dropping about 10% or so but typically recovering within a few months.
This is so frequent and routine that it’s almost unnoteworthy. We should be shocked if it didn’t happen.
A 20% or more drop, on the other hand, is considered a bear market and is generally the sign of something bigger going on.
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Typically, a 20% decline might happen every seven years or so, but in the last several years such drops have been more frequent. They happened in 2020 and 2022. In 2018 and 2025, the market met the definition of a bear market — a 20% decline from recent highs — during intraday trading but recovered each time before closing.
People may not remember those intra-day declines 10 years from now because they weren’t technically bear markets, but at the time they affected investors’ emotions.
Still, it’s worth noting that the market has always come back. Anyone who reacted to every single one of the extreme ups and downs over the last few years would have felt like they were on a roller coaster.
It’s better to stay calm rather than subject yourself and your portfolio to such a stomach-churning ride.
Focus on progress, not perfection
The key for individuals is to find the middle ground between greed and fear, the two emotions that motivate so many people when it comes to investments.
I would say the majority of people are on the fear side. They have a scarcity mindset, are hesitant to take risk and don’t react well to losses when the market drops.
Then there are those on the greed side. They see a down market as an opportunity, a time to buy rather than sell so they can reap the rewards when the market makes a comeback.
That’s not bad thinking, except those who are overly motivated by greed keep waiting for the market to go down even further so they can buy at an even lower price and reap greater rewards when the market rebounds.
Driven by emotion rather than careful planning, they miss their window of opportunity.
Neither of these is the best path forward. Instead of succumbing to emotion, use research and logic as you make financial decisions. Don’t seek perfection, but focus on progress.
The good news is you don’t have to go this alone. A financial professional can help you assess your risks and understand the moves you can make to achieve your goals.
This person will serve as a guide who can help you set aside emotions, determine how much risk you are comfortable with and create a plan that works for you.
Then you can feel free to ignore all the market noise around you.
Ronnie Blair contributed to this article.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
This material was prepared by Alex Angst in a personal capacity. The opinions expressed are the author’s own and not necessarily those of OneSeven. OneSeven is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with RISE Capital represent the individual’s role with RISE Capital, and not their role with OneSeven. Services are provided under the name RISE Capital, a DBA of OneSeven. Insurance Products offered through AA Insurance Advisors, LLC.
