Hold Steady—Your Future Self Will Thank You for It
As a matter of fact don’t let volatility rob you of long-term returns. You should lean in when others run, your future self won’t forget how smart you were. Participate in this market and find opportunity in the panic!
If you didn’t liquidate before the tariff-driven market drop that began in early April, the message now is simple: Hold. Don’t sell.
If you managed to catch my post from February 28th, Overcoming Fear to Build Wealth: 7 Moves If You Think a Recession Is Coming, I highlighted practical moves that might have you holding a nice chunk of cake —ready to slice and serve to the wild little opportunities bouncing around your backyard. This is the beauty of rebalancing before the storm. Those of you who had already repositioned defensively—reducing high-volatility tech exposure, adding inflation hedges, and diversifying into more stable sectors—felt some pain, but less than those who stayed overexposed.
And if you were late to rebalance? Breathe. Don’t compound the situation with a panic sell. This is not the time to sell.
Why? Because markets move faster than emotions can process. The S&P 500’s drop following the tariff announcement was swift, but the opportunity to exit before the storm has passed. Attempting to “wait it out” in cash and re-enter later may sound like a safe move—but data and experience say otherwise.
A compelling chart I saw recently pointed to a key fact: stocks typically bottoms 7 to 9 months before a recession hits. That means by the time headlines declare a recession, the market may already be well into its recovery. If you sell now, not only do you lock in a loss—you risk being late to the rebound, too. And as history has shown, rebounds don’t wait for nervous investors to catch up.
Right now, hundreds of analysts are combing through corporate earnings. They’re pricing in pain—but also resilience. Many are identifying companies that have already adjusted, recalibrated, and are poised to recover before the broader economy catches up. And let’s not forget—we’re not out of the woods yet.
While Wall Street recalibrates, the Main Street investor should stay grounded. We're now less than 90 days away from another potential bout of volatility when the tariff pause expires—hopefully better prepared this time. The companies adapting today could be tomorrow’s out-performers. You don’t want to miss that ride.
If you panic and sell now, you’re turning a paper loss into a real one—and betting against the very principle of long-term investing. That’s a tough cycle to break, and the odds of re-entering at the "right" moment are stacked against you.
Of course, everyone's situation is different. This is by no means personalized financial advice. Be sure to consult a licensed financial professional who understands your unique goals, risk tolerance, and time horizon—especially if you're nearing retirement or facing major life changes. Strategy matters, but so does suitability.
BMG is here to help and now’s the time to review your allocation—not to abandon it. Are you still aligned with your goals and risk tolerance?
