When a steadily climbing stock market suddenly turns into a roller coaster—or worse, goes into an extended decline—even experienced investors may be tempted to seek a safer haven for their assets. But while it’s natural to be nervous in the face of uncertainty, pulling out of the market is rarely the right choice for investors with long-term investment objectives. 

For business owners and high-net-worth families, the stakes are particularly high, as these decisions can impact more than just their investments. 

A financial plan takes your full financial picture, including your business, your family, and your future goals, and builds a strategy around it. Tumultuous markets are never fun, but the right strategy, customized to your situation, may help you stay on course. 

Let’s start with the numbers. As tempting as it is to try to time the market, it’s extremely difficult to do it consistently with any accuracy. Based on historical market studies, an investor who misses the 10 best market days out of 20 years earns 57% of what someone who stays invested earns. Miss the best 20 days, and that number drops to 27%. 

The problem is that there is no reliable way to consistently predict when those best days will arrive. The market’s biggest gains and steepest losses tend to cluster together, often within days of each other. That means trying to avoid the bad days almost always means missing the good ones, too. 

“No one can consistently call the market’s direction,” says Darin Richards, Partner + Chief Investment Officer at Aldrich Wealth. “The data are pretty clear: Time in the market has historically outperformed attempts to time it. Stepping out, even briefly, can mean missing the days that matter most to your long-term returns.” 

The case for staying invested is supported by historical data. The harder part is actually doing it when your portfolio’s value is shrinking, and every headline seems to confirm your worst fears. Investors without a plan may be more vulnerable to making reactive decisions during periods of volatility. 

Take 2024, for example. Although it was an excellent year for the stock market, with the S&P returning gains of 25%, the average investor earned just 16.5% (according to a study published by Dalbar dated 3/31/25). The reason: They tended to reduce exposure to equity markets at the wrong time. 

A solid plan helps ensure decisions are driven by strategy, not emotion.  

A sound strategy takes market downturns into account. It covers near-term cash needs, removing the pressure to sell at the wrong time. It sets a clear timeline, so short-term losses don’t distract from long-term progress. And it connects every investment choice to a broader financial picture, including your business, your family, and your future. That way, you’re focused on long-term goals instead of short-term volatility. 

History shows that investors who remain invested over longer periods have often experienced more favorable outcomes. While downturns are stressful, it’s worth remembering that market declines have eventually recovered—though the timing and pace of recovery can vary. 

The investors who benefit are often those who let a long-term plan, rather than short-term fear, guide their decisions. 

Disclosure: This article is for informational purposes only and does not constitute investment advice. All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results. Market conditions and investor outcomes can vary significantly over time. Any statistics or market data referenced are based on sources believed to be reliable but are not guaranteed as to accuracy or completeness. Investment strategies should be evaluated based on individual financial circumstances, objectives, and risk tolerance.