Staying Invested During Economic Uncertainty

Amidst economic uncertainty, this is a good opportunity to remind people to continue making informed decisions with their portfolios. Hyperbolic Discounting - the preference of immediate rewards over larger, long-term rewards often causes panic selling. Here’s why you shouldn’t:

Remembering History

Markets have weathered tariff storms before. During the 2018–2019 trade war, stocks fell initially but rebounded once tensions eased – the S&P 500 dropped ~4 to 6% in 2018 then surged over 31% in 2019​.

Focus on the Long Term

Irrespective of market status, economic fundamentals remain resilient. Younger investors far from retirement with long-term goals and some risk appetite are way better off “letting it ride.” – even a 10% correction is often erased within a year or two​. Trying to time the market or predict short-term moves often backfires, so stick to your long-term investing plan.

Avoid Panic Selling

Behavioral finance has demonstrated that knee-jerk reactions to volatility may lock in losses. Instead, confirm your portfolio is well-diversified and aligned with your goals, ignoring short-term ups and downs​. Remember that downturns also provide opportunities – by investing regularly, you’re able to buy more shares when prices are low​.

Bottom line: Don’t let fear dictate your strategy. Staying calm and invested through volatility has proven to be the best course for long-term investors.