It is not uncommon for people to become hesitant as a new year begins. Best laid plans are countered with fear, stress and uncertainty.
Market uncertainty is something every investor faces whether due to economic shifts, geopolitical tension, inflation, interest rate changes, or unexpected global events. When the markets feel unpredictable, it’s natural for investors to worry about their future, question their strategy, or wonder whether they should make significant changes. But the truth is, uncertainty isn’t an anomaly. It’s a regular part of investing.
We help investors navigate these unpredictable periods with clarity, confidence, and long-term perspective. The goal isn’t to eliminate uncertainty, but to create a plan resilient enough to withstand it. Here’s how investors can stay on track, remain focused, and continue building toward long-term financial security even when the markets feel unclear.
Understand market uncertainty Is normal
The first step in managing uncertain markets is accepting that volatility is an inherent part of investing. Over decades of market history, periods of strong growth have always been mixed with downturns, corrections, and unexpected shocks. Yet through it all, markets have consistently trended upward over the long term.
Consider these historical truths:
- Market corrections – declines of 10% or more, on average, every 1 – 2 years.
- Bear markets declines of 20% or more – happen roughly every 6-7 years.
- Despite this, long-term investors have historically seen positive returns.
When investors internalize this, the emotional impact of volatility lessens. Uncertainty no longer feels like a sign that something is wrong. It becomes a reminder that they are participating in a system that rewards patience, discipline, and long-term thinking.
Avoid emotional decision making
During turbulent markets, it can be tempting to react emotionally. Selling investments out of fear, chasing new trends, or trying to time a recovery. But emotional decisions often come at a cost.
Why emotional reactions are risky:
- Selling during downturn locks in losses and removes benefit from recovery.
- Market timing is nearly impossible, even for professionals.
- Buying during market euphoria can lead to overpaying for investments.
Human emotions fear, panic, excitement are valuable in many areas of life, but not in investment decision-making. Acting based on short-term feelings can derail years of careful planning.
A better approach is to rely on your financial plan, revisit your long-term strategy, and consult with your advisor before reacting. Often, the best course of action during volatile periods is to stay invested, stay disciplined, and stay focused on your goals.
Revisit your long term goals
Uncertain markets provide an opportunity to reflect on what you’re ultimately working toward. Most investors aren’t investing for next month or next year. They’re investing for milestones like retirement, buying a home, leaving a legacy, or creating financial independence.
When you reconnect with your long-term goals, short-term market movements feel less intimidating.
Ask yourself:
- Have my goals changed?
- Is my investment timeline the same?
- Am I still comfortable with my level of risk?
- Do my current investments align with my long-term objectives?
Often, the answer is yes. Your goals haven’t changed at all. Volatility simply gives the illusion that something needs to change. In most cases, staying committed to your strategy is the most effective plan, especially if your goals are still many years away.
If your situation has changed. A new job, nearing retirement, large future expense. This could be the right time to adjust your plan. A financial advisor can help evaluate whether your strategy still aligns with your personal timeline and vision.
Ensure your portfolio is properly diversified
Diversification is one of the most powerful tools for reducing risk during uncertain markets. When your investments are spread across different sectors, asset classes, industries, and geographic regions, volatility in one area is often balanced by strength in another.
Benefits of a diversified portfolio include:
- Reduced exposure to any single investment.
- Lower volatility over time.
- More stable long-term growth.
- Opportunities for returns in multiple areas of the market.
A diversified portfolio typically includes:
- Canadian, U.S., and international equities
- Bonds and fixed-income securities
- Real estate or alternative assets
- Cash equivalents or short-term investments
Diversification doesn’t eliminate risk, but it helps create a smoother investment journey. During turbulent markets, a well-diversified portfolio provides confidence that you’re not overly dependent on the performance of any single sector or region.
Continue investing when prices are lower
One of the most powerful ways to build wealth through market uncertainty is to continue investing consistently, even when the market dips. This is the principle of dollar-cost averaging: investing the same amount on a regular schedule regardless of market conditions.
During down markets, your contributions purchase more shares at lower prices. When markets recover, as they historically have, those shares increase in value, leading to greater long-term growth.
Dollar-cost averaging helps you:
- Stay disciplined
- Avoid emotional decision-making
- Benefit from long-term market gains
- Reduce the impact of short-term volatility
When the market feels uncertain, many investors are tempted to pause contributions. But often, these uncertain periods are some of the most advantageous times to continue investing.
Review and rebalance your portfolio
Over time, market changes can cause your portfolio to drift away from your ideal asset allocation. For example, if stocks outperform bonds, your portfolio may become more growth-heavy than your risk tolerance supports.
Rebalancing helps keep your strategy aligned with your long-term goals.
Rebalancing involves:
- Selling some investments that have risen in value
- Buying investments that may now be undervalued
- Restoring your portfolio to your target risk level
This prevents your portfolio from becoming unintentionally riskier, or too conservative, than you planned.
We typically review portfolios regularly throughout the year, making adjustments to ensure clients remain on track regardless of market conditions.
Strengthen your financial foundation
Market uncertainty can highlight the importance of having a strong financial base. When investors know they are financially secure, they’re far more comfortable staying invested during turbulent times.
A strong financial foundation includes:
- A properly funded emergency savings account
- A manageable level of debt
- Adequate insurance coverage
- A well-defined budget or cash flow plan
- Clear visibility into upcoming financial needs
When these foundational elements are in place, market volatility becomes easier to navigate because your day-to-day life isn’t impacted by short-term changes in your investment portfolio.
Focus on what you can control
Investors often worry about headlines, predictions, and economic forecasts. But most of these factors, interest rates, inflation, global events, are outside of anyone’s control.
Instead, focus on the elements you can influence:
- Your savings rate
- Your spending habits
- Your investment timeline
- Your risk tolerance
- Your long-term strategy
By concentrating on controllable factors, you reduce stress and build a more resilient financial plan. Market uncertainty becomes less about reacting to events and more about staying committed to your personal goals.
Avoid information overload
In a 24 hour news cycle, every market movement becomes breaking news. Constant exposure to headlines can create anxiety and distort your perception of the markets.
To stay focused:
- Limit how often you check your investments
- Avoid emotional headlines meant to trigger reactions
- Seek information from reputable financial sources
- Talk to your advisor before making decisions
Filtering your information helps maintain perspective and prevents market noise from influencing your long-term plan.
Work with a trusted financial advisor
Uncertain markets are when a financial advisor becomes most valuable. At Dunbrook Associates, our role is to help clients stay calm, stay informed, and stay aligned with their long-term strategies.
An advisor can help you:
- Understand market trends and what they mean
- Align your portfolio with your goals and risk tolerance
- Reduce emotional decision-making
- Identify opportunities during market declines
- Build a personalized long-term plan
- Provide reassurance and perspective when the market feels overwhelming
Having a trusted professional in your corner can make all the difference in ensuring you stay on track through both calm and turbulent periods.
The bottom line
Market uncertainty is not something to fear. It’s something to prepare for and navigate wisely. While no one can predict short term movements, investors who stay disciplined, focused, and aligned with their long-term goals consistently fare better than those who react impulsively or try to time the market.
The key is to stay invested, stay diversified, and stay connected to a strategy designed around your unique needs. We help investors build plans that withstand uncertainty and support long-term financial success.
If you’re concerned about current market conditions or want a second look at your strategy, we’re here to help. Together, we can ensure your plan stays strong no matter what the markets are doing and in Keeping Life Current.
