The Stock Market Is Selling Off—Should I Follow?
The past few weeks have left many investors feeling anxious. Markets have been volatile, headlines are loud, and it can feel like your hard-earned savings are slipping away faster than you can catch them. If you are wondering whether now is the time to sell, you are not alone. I have had conversations with several thoughtful, goal-oriented clients this week who have asked the same thing: “The market is down; should I get out?” That question is understandable. It is human. And at Serene Financial Solutions, we honor those moments. Because investing is not just about charts and forecasts; it is about your life, your goals, your family, and your future. So let’s walk through this together, with care, clarity, and a focus on what matters most.
First, Take a Breath and Revisit Why You are Investing
Whether you are saving for retirement, funding your child’s education, or working toward another meaningful goal, your portfolio should be aligned with a plan, one that reflects both your target return and your comfort with risk.
Ask yourself:
What am I investing for?
How much growth do I need over time?
What level of ups and downs am I genuinely comfortable with?
When markets decline, the most important question is not “Should I sell?” but “What will help me stay on track toward my long-term goals?” Selling in a down market might seem like a way to stop the pain, but unless you have a clear strategy for what comes next, it is often a detour, not a solution.
Why Emotional Investing Rarely Pays Off
Let’s take a moment to talk about emotional investing. It happens when decisions are made not from a place of strategy, but from fear or euphoria. It looks like this:
In bull markets, investors see prices rising and rush to buy, often too late, when valuations are already high.
In bear markets, fear takes over. Investors see others selling, and they follow, again, often too late, after much of the decline has already occurred.
This pattern of buying high and selling low is the exact opposite of what leads to success. But it is surprisingly common because it is emotionally driven. I often ask clients: “If you hired a financial advisor who sold off your portfolio in a panic, without a clear plan for reinvesting, how would that make you feel?” Apply the same standard to your own decisions. You deserve thoughtful, informed guidance, even from yourself.
A Teaching Moment: The Math of Staying the Course
Let’s say your goal is to grow your savings from $10,000 to $20,000 over 10 years. That requires about a 7.18% annual return. Now, imagine that after two volatile years, your account is back to $10,000. To still reach your goal over the remaining eight years, your return target jumps to 9.05%. The question then becomes: What strategy gives you the best chance of reaching that 9.05% return, staying the course, or pivoting based on fear? If you do not have a solid reason to believe a new strategy will outperform your current one (especially over the long term), selling now may actually lower your chances of success.
Offense and Defense: A Balanced Approach to Volatility
In sports and in investing, success requires a balance of offense and defense. Your defensive game includes diversification, holding bonds or cash reserves, and having a portfolio that can weather short-term storms. Your offensive game is about seizing opportunity when others hesitate, buying quality investments that are temporarily undervalued. For example, when the market dropped sharply in 2020 due to the pandemic, investors who held steady or even added to their positions saw impressive rebounds. Those who sold missed out on one of the fastest recoveries in market history. Sometimes, as counterintuitive as it feels, the right move is to lean into the storm, not run from it.
How to Turn Market Volatility Into Opportunity
If you are feeling anxious about volatility, here is a more constructive way to respond:
Look for value: Great companies sometimes get caught in broader selloffs. This could be an opportunity to invest at better prices.
Focus on fundamentals: A company’s long-term potential is not erased by a bad news cycle. Evaluate the business, not the noise.
Stick to your plan: Discipline is a superpower in investing. Let your plan, not your emotions, drive your decisions.
A Gentle Reminder
Markets will rise and fall. They always have, and they always will. But your goals - retirement, security, peace of mind, are steady. Let your investment strategy reflect that steadiness. If you are feeling uncertain right now, please know that is okay. These are the moments where having a trusted advisor truly matters. I am here to answer your questions, walk through your concerns, and make sure you feel supported in your journey. You do not have to make these decisions alone. And you certainly do not have to make them in fear.