About This Episode
Market volatility can rattle even the most seasoned investors. In this episode of GDS Unplugged, Glen and Robert break down how to stay calm, stay smart, and stay invested when the market gets choppy. From historical context to diversification strategies and real-life examples, this episode is your guide to navigating uncertainty with confidence.
Whether you're a long-term investor or just getting started, Glen and Robert offer practical insights to help you manage risk and make informed decisions—no matter what the market throws your way.
Understanding Market Volatility: A Historical Perspective
Volatility isn’t a bug in the system—it’s a feature. Glen reminds us that market ups and downs have always been part of the investing journey. Historically, the stock market has delivered an average return of 10% per year, but that comes with the reality that 2 out of every 10 years are likely to be negative.
Compare that to the 10-year Treasury bond, which has historically paid around 4.5%. The trade-off? Lower risk, lower reward. The key takeaway: downturns are normal. The market has always recovered—and it will again.
The Importance of Diversification in Turbulent Times
Diversification can be your financial seatbelt. Glen and Robert emphasize that spreading your investments across different asset classes, sectors, and regions can help cushion the blow when markets dip.
Instead of betting big on a single stock or sector, a diversified portfolio helps ensure that when one area struggles, others may thrive. It’s not about eliminating risk—it’s about managing it wisely.
Strategies for Managing Risk and Minimizing Losses
Smart investing isn’t about avoiding risk—it’s about managing it. Glen and Robert share actionable strategies like:
- Rebalancing your portfolio to maintain your target asset allocation.
- Setting stop-loss orders to limit downside.
- Avoiding speculative plays that don’t align with your goals.
- Keeping an emergency fund so you’re not forced to sell at a loss.
- They also stress the importance of regularly reviewing your investment plan to ensure it still fits your risk tolerance and financial objectives.
The Pitfalls of Trying to Time the Market
Trying to time the market is like trying to catch a falling knife. Glen and Robert caution against the temptation to jump in and out of the market based on headlines or gut feelings.
Here’s the math: If you invested $10,000 in the S&P 500 on December 31, 1979, and stayed invested through March 31, 2025, you’d have over $1.6 million. Miss just the five best days? Your return drops to around $1 million. The lesson? Stay the course.
The Benefits of Long-Term Investing
Warren Buffett said it best: “In the short term, the market is a voting machine; in the long term, it’s a weighing machine.” Glen echoes this wisdom, encouraging investors to focus on fundamentals and long-term goals.
By staying invested and resisting the urge to react emotionally, you give your portfolio the time it needs to grow and recover from short-term setbacks.
Real-Life Examples: Navigating Market Dips and Rebounds
Glen brings the theory to life with real-world stories. Take Deckers, the company behind UGG and Hoka. Despite a 45% drop due to tariffs, strong leadership and smart manufacturing shifts positioned them for a rebound.
Or consider the 2008 financial crisis and the COVID-19 crash—both saw dramatic recoveries for those who stayed invested. These examples show that patience and perspective pay off.
Don’t Let Volatility Derail Your Plan
Market volatility is inevitable—but it doesn’t have to be scary. With the right mindset and strategy, you can turn uncertainty into opportunity.
Resources
Ready to take your learning to the next step?
- Connect with Glen Smith and Robert Casey on LinkedIn.
- Contact GDS Wealth Management for a complimentary financial consultation.
- Submit your questions to Glen and Robert’s GDS Unplugged mailbag by emailing gds@gdswealth.com.
Why Listen?
This episode is packed with practical advice and real-life examples to help you navigate market volatility with confidence. Glen and Robert break down the myths, the math, and the mindset behind smart investing. Whether you're weathering a downturn or planning your next move, this episode will help you stay grounded and focused on your long-term goals.
GDS Wealth Management (“GDS”) is an SEC Registered Investment Adviser. Registration as an investment adviser does not imply a certain level of skill or training. The information presented in this podcast is intended for general informational purposes only and does not constitute investment, legal, tax, or other professional advice. Any references to market performance, economic conditions, financial planning concepts, or historical returns are intended for illustrative purposes only and do not represent actual client accounts. Any commentary related to portfolio strategies, fiduciary responsibilities, or financial advisor selection is general in nature. Listeners should carefully consider their own financial situation, objectives, and risk tolerance before making any investment decisions or selecting a financial professional. Past performance does not guarantee future results. All investing involves risk, including the potential loss of principal. The views and opinions reflect the authors as of the publication date and are subject to change without notice. This podcast does not guarantee any specific financial outcome or result from the implementation of any strategies discussed. For more information about GDS Wealth Management, including a description of services, fees, and important disclosures, please visit https://www.gdswealth.com.
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