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Tips for Managing Your Portfolio in Turbulent Times

April 23, 2025

“Financial markets are squeamish.” 

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Seasoned investors recognize that risk is inherent to investing in the stock market. Numerous variables affect market performance, and those factors can make investing feel like a roller coaster ride.

The stock market has certainly experienced its share of ups and downs in recent weeks, and that turbulence has led to some sleepless nights for investors. Investors concerned about unpredictable market fluctuations and the effects of such turbulence on their portfolios can keep these strategies in mind as they look to protect their investments.

· Determine how much risk you’re comfortable with. Investopedia defines risk tolerance as the degree of risk investors are willing to endure given the volatility in the value of an investment. Certain types of investments, such as stocks and exchange-traded funds (ETFs), are associated with a higher risk tolerance, while bonds have long been recommended to individuals who are uncomfortable taking on too much risk. Conventional financial wisdom suggests individuals assume less risk as they age and get closer to retirement, but investors also can reevaluate their risk tolerance during turbulent times. If an up-and-down market is leading to sleepless nights, it might be time to assume less risk, regardless of an investor’s age. Investors who are comfortable assuming risk in a turbulent market can maintain the status quo or even assume greater risk in the hopes of reaping greater rewards.· Consider a rebalance. Investors rebalance their portfolios to make themselves less vulnerable to market fluctuations and to ensure they’re not sinking money into underperforming stocks and funds. A balanced mix of risky and steady investments can help investors grow their money and rest easier in the knowledge that all of their eggs are not in one basket, and that they’re doing all they can to avoid bad investments.

· Don’t sweat the small stuff. The investment experts at John Hancock® note that bear markets, which is the term used to describe a market that falls 20 percent or more from its peak, historically do not last as long as bull markets. A bull market occurs when stocks increase by 20 percent or more after a decline. Younger investors who are not nearing retirement age should not lose too much sleep when a turbulent market takes a downturn, as the dip likely won’t last long nor affect their long-term financial stability. Older investors concerned by market losses also can rest easy if they choose less risky investments the closer they get to retirement. Many funds are now based on investors’ targeted retirement dates, and such vehicles automatically rebalance portfolios as investors age, making it easier to get through dips in market performance no matter an investor’s age.

Investing during turbulent times can try investors’ patience. But a handful of strategies can help investors protect their financial futures even during times of great market fluctuation.

Please keep in mind this information should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a qualified financial professional. The value of investments can fluctuate, and past performance is not indicative of future results. Always consider your risk tolerance and financial goals before making investment decisions.  US citizens have unique tax requirements which should always be reviewed with a professional.

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About The Publisher

Jeff Corbett
As entrepreneur, author and magazine publisher with over 25 years’ experience in the global marketplace, I enjoy writing as an advocate for international business and personal freedoms. Thanks to my experiences building businesses I also have a tremendous interest in reading or writing about motivation and self-discipline.