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Episode 89: How to Stay Smart and Steady During Market Volatility

Feeling anxious about the market? You’re not alone. When headlines flash red and portfolios dip, even seasoned investors can start to second-guess their strategy.

In Episode 89 of the Last Paycheck podcast, CERTIFIED FINANCIAL PLANNER® professionals Rob and Archie Hoxton offer perspective—and a plan—for staying confident and grounded during times of market uncertainty. Their message is clear: volatility is normal. Panic is optional.

Why Is the Market So Volatile Right Now?

Market swings are driven by both economics and emotion. Rob and Archie explain the current climate in terms of:

  • Inflation uncertainty: While inflation has cooled somewhat, it continues to influence interest rate expectations.
  • Employment and growth data: Mixed signals from the labor market can spook investors and fuel speculation.
  • Federal Reserve policies: Rate decisions ripple through the economy and directly impact portfolio performance.
  • Geopolitical instability: From global conflict to U.S. elections, political news adds another layer of unpredictability.

But beneath the surface, the real issue is often investor behavior. Fear, herd mentality, and media overload create pressure to “do something”—even when staying put is the better move.

What Should Smart Investors Do During Market Volatility?

Rob and Archie offer practical, tested advice for weathering market storms without overreacting:

  • Stay invested. History shows that long-term investors are rewarded. Trying to time the market often results in missing the best recovery days.
  • Rebalance regularly. Market movements can throw off your asset allocation. Rebalancing helps you manage risk and stay aligned with your goals.
  • Keep 12 to 18 months of cash available for short-term needs. That way, you won’t be forced to sell investments during a downturn.
  • Stick with your plan. Your strategy was built to handle good years and bad ones. Reacting emotionally mid-cycle can cause more harm than good. 

What Should You Avoid?

Emotional reactions can derail even the most carefully built portfolio. Here’s what to steer clear of:

  • Panic selling. Locking in losses by moving to cash guarantees you miss the recovery.
  • Chasing predictions. No one—no matter how confident—can consistently time the market.
  • Overcorrecting. Making dramatic shifts based on fear instead of data can throw off your long-term goals.

Ask Yourself:

  • Do I have enough liquidity to avoid selling in a downturn?
  • Is my current risk level still aligned with my retirement timeline?
  • Am I making decisions based on headlines—or on a solid, forward-looking plan?

Final Thought

Volatility is not new. It’s not rare. And it’s not something to fear. With the right structure, discipline, and support, you can keep moving forward—even when the market takes a few steps back.

Ready to build a portfolio that can weather market storms?

Download our Investor Readiness Worksheet or schedule a no-pressure consultation at www.hoxtonpm.com/schedule. Let’s help you move from worry to wisdom.
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Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.