Hi, my name is Jordan Eich and I am one of the Wealth Managers here at Howe & Rusling in the Rochester office.
From 2009 through 2025, the S&P 500 has only seen three calendar years with negative returns – 2015, 2018, and 2022. That period of relative calm can make it easy to forget that markets do decline. However, the tariff-related volatility in April of last year, combined with some bumpiness to start 2026, has been a good reminder that market declines are normal. Volatility is common – but it is never comfortable. So how do we maintain discipline when markets get bumpy?
Discipline is about doing what matters, even when it’s uncomfortable, because you trust the long-term outcome more than the short-term feeling. It’s about choosing actions intentionally instead of reacting emotionally.
The rewards for discipline can be great – but it’s extremely difficult to master. If discipline were easy, we all might eat healthier, exercise more, be better spouses, parents, and investors.
Our brains prefer comfort over progress. We are built to avoid pain, seek immediate relief, and react quickly to threats. Discipline is the opposite of instinct. It asks us to tolerate discomfort now for a benefit that’s distant and uncertain.
I have a 2-year-old daughter who loves to eat bananas more than anything in the world. If all she ever ate were bananas, she would be content. While there are worse foods she could be interested in, I know it’s important that she gets nutrition from other foods. Sometimes introducing these other foods comes at the expense of a temper tantrum. I’d be lying if I didn’t think about just getting her a banana to calm the situation. My emotions say, “End the discomfort.” But the intentional decision is to prioritize long-term health over short-term calm.
It’s a lighthearted example, but I think there are some parallels to investing. Whether it’s getting up early to exercise after a rough night of sleep, putting in extra hours to meet a deadline, or sticking to a financial plan during market turbulence – discipline shows up in many areas of life. Volatile markets don’t require new skills. They require the same discipline you already practice – show up, stick to the plan, and don’t let short-term discomfort derail long-term goals.
When markets are calm, our plans feel logical and it may be easier to stay disciplined. When volatility rises, logic can disappear in a hurry. The more money is on the line, the more emotion may affect our actions. Next, we’re going to dive into some ideas on how you can prepare for and navigate market volatility.
Expect It
History shows us that volatility is the price of admission for long-term returns. Stock market volatility is normal. Some of the best days in the stock market have occurred immediately after the worst. Investors that sell during sharp market downturns have the potential to miss out on the dramatic rebounds that often follow. Missing out on a few of these recovery days can dramatically impact long-term results.
Have An Adequate Emergency Fund
An emergency fund can protect you from being forced to sell investments at the wrong time. If unexpected expenses arise during a market downturn, having cash reserves can prevent you from having to “lock in” losses. It may also provide a psychological runway to help you stay invested when markets get choppy, knowing you have funds set aside for emergency expenses while you wait for your investments to recover.
Choose An Appropriate Asset Allocation
The mix of stock, bond, and cash investments are a large determining factor in your portfolio returns, but also the level of volatility. More aggressive allocations to stocks have historically yielded higher returns over a long period of time but can be subject to significant losses as well. Make sure that your asset allocation aligns with your goals, time horizons, and risk tolerance. It should be something that helps you accomplish these goals, but one that you are able to stick with throughout volatile time periods.
Invest Consistently
Investing at regular intervals, regardless of market conditions, may help remove emotion from the process. This disciplined approach is called dollar-cost-averaging. It allows you to buy shares at a range of prices, including when markets decline. Investing during downturns can feel counterintuitive, but having a systematic investment process can help you benefit from lower valuations over time.
Have A Plan
As my colleague Dylan Potter says, “A good strategy you can stick with usually beats a perfect one you can’t.” A realistic, thoughtfully constructed financial plan aligns your goals, expected returns, and risk tolerance. If a strategy requires excessive risk to succeed, it may not be sustainable. The best plan isn’t necessarily the most aggressive one – it’s the one you can follow consistently.
Seek Professional Advice
Working with a financial professional can help you so that you don’t have to navigate market volatility alone. At Howe & Rusling we follow a clearly defined and repeatable process based on fundamental and technical analysis. Following a defined process during periods of volatility may help to avoid emotional decision making during turbulent periods.
A professional advisor may also help you identify opportunities that volatility may create – like Roth conversions or tax-loss harvesting – turning uncertainty into potential advantage.
Conclusion
Discipline won’t eliminate volatility, but it can give you a framework to navigate it. Markets will fluctuate. Headlines will provoke emotion. Uncertainty will exist. Your advantage as an investor doesn’t come from predicting the next downturn or perfectly timing the rebound. It comes from consistency. Consistently following a plan, consistently aligning your portfolio with your goals, and consistently choosing long-term progress over short-term comfort.
Disclosures: This material is provided for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer or solicitation to buy or sell any security or to adopt any investment strategy. Any opinions expressed are as of the date of publication and are subject to change without notice. Howe & Rusling is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Investing involves risk, including the possible loss of principal. Diversification and asset allocation do not ensure a profit or protect against loss. There is no guarantee that any investment plan or strategy will be successful or achieve its objectives. References to market returns, index performance, or market “best”/“worst” days are for general market information and do not reflect the performance of any client account. Indices (including the S&P 500) are unmanaged and not available for direct investment; index returns do not reflect the deduction of fees and expenses that would reduce returns. Any discussion of dollar-cost averaging is intended to be educational. Dollar-cost averaging does not assure a profit or protect against loss in declining markets. An investor should consider their ability to continue investing through all market conditions. Any references to tax strategies (including Roth conversions and tax-loss harvesting) are general in nature. Howe & Rusling does not provide legal or tax advice. Please consult your tax and/or legal professional regarding your specific situation. Links to third-party websites are provided as a convenience. Howe & Rusling does not control, endorse, or assume responsibility for the content, security, or privacy practices of third-party sites. The views expressed by third parties are not necessarily those of Howe & Rusling. This communication does not include any testimonials, endorsements, or third-party ratings. If testimonials/endorsements are used in other communications, additional disclosures may apply. For additional information about Howe & Rusling’s services, fees, and conflicts of interest, please refer to the firm’s Form ADV Part 2A and Form CRS (Client Relationship Summary), available upon request and at the SEC’s Investment Adviser Public Disclosure website (adviserinfo.sec.gov).
