By Shea Sanche, CFP® · Last reviewed: April 2026
Market downturns are inevitable. Panic isn't. This article walks through how to think about volatility - and what disciplined investors do differently.
When markets wobble, it’s tempting to wonder if we’re in uncharted territory. Following tariff announcements and recent volatility, the S&P 500 index has seen sharp movements. The headlines are full of uncertainty, from inflation concerns to geopolitical tensions.
But before making knee-jerk decisions, it helps to zoom out and remember where we were not too long ago.
The Historical Perspective
Think back to early 2020. COVID-19 sent shockwaves through the world, and markets responded with a record-setting drop – down 34% in just over three weeks. Fear was everywhere. But not long after, the market staged a stunning comeback, climbing 78% within a year.
Those who stayed put reaped the rewards. Those who panicked and sold missed one of the fastest rebounds in history.
Time in the Market vs. Timing the Market
Pulling out of the market at the wrong time can be costly. For example, a $10,000 investment in a broad U.S. stock index back in 2000 would have grown to over $66,000 by the end of 2024. If you missed just the best-performing 10 days, that total drops to just $30,000.
The takeaway? Timing the market is a gamble. Sticking with a plan is a strategy.
Why Calm Wins
Markets reward patience because they reflect the collective efforts of businesses trying to solve problems and create value. Not every company wins, but the overall system is designed to move forward. That’s why long-term returns have historically hovered around 10% annually.
Smart investing is less about chasing returns and more about consistency. It means building a portfolio that suits your life and having the confidence to stay the course, even when things feel uncertain.
In the end, it’s not about predicting what’s next – it’s about being ready for whatever comes next.
Common Questions
Answers to the questions people actually ask.
How do financial advisors in Canada get paid?
What is a normal advisor fee in Canada?
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Key Takeaway
The most expensive mistake an investor can make is selling during a downturn and waiting to feel comfortable before reinvesting. By the time comfort returns, most of the recovery has already happened.