When markets feel uncertain, it’s human nature to want to pause or pull back. But stepping away from investing altogether could mean missing out on opportunities. In fact, continuing to invest—even when things feel shaky—is often one of the smartest long-term moves you can make.
Here’s why:
In early 2009, the stock market hit its lowest point in years.
The S&P 500 had dropped more than 50% from its peak, headlines warned of a global financial collapse, and even seasoned investors were bracing for impact. People were selling. People were scared.
And then—quietly at first—the market began to recover. It didn’t feel like optimism. It felt like survival. But those who stayed invested didn’t just make it through… they experienced one of the longest bull runs in history.
Market volatility isn’t just about crashes. It’s all movement: the upswings, the recoveries, the breakouts, and yes, sometimes the downturns, too. The emotions that come with it are real, especially when it feels like your wealth is on the line. At Hendershott Wealth Management®, we don’t downplay that. We plan for it.
Because the truth is: market volatility isn’t the enemy of long-term investing. Emotionally-driven decision-making is.
Sometimes it’s the surge of a bull run; other times, it’s a sharp drop that tests your resolve. But in both directions, volatility has the power to stir emotion and influence behavior—often in ways that can impact your long-term plan.
When investment markets feel steady, optimism is easy to find. But that confidence can backfire if it turns into inertia that leads investors to overlook the risk produced by a now outsized position, or assume recent performance will continue.
On the other hand, when markets are uncertain, headlines are unsettling, and portfolios dip, it’s human instinct to want to do something. But decisions driven by fear can lead investors to panic sell or worse: eschew stocks altogether. Both are expensive moves that potentially jeopardize their long-term wealth building efforts.
We work with investors at all stages of life, and what we’ve seen time and again is this: Every generation faces moments that feel unprecedented.
We’ve witnessed technological advances, the emergence of new industries, and massive wealth growth. We’ve also experienced the downturns from global pandemics, wars, tech crashes, and political upheaval.
Market cycles will keep happening—when you’re investing, that much is guaranteed. And. So far, every stock market cycle has resolved itself—so it isn’t the events we need to worry about, but rather the reaction we have to it.
Human emotion is a powerful driver of our decisions, and the media has always found a way to insert emotion into financial headlines–especially fear. Whether it’s fear of missing out or fear of losing it all, there is no shortage of conversation (and speculation) about quick wins, looming crashes, and the notion that this time is different.
But alongside that emotional rollercoaster, there’s another story. One that doesn’t make the news quite as often, but has shaped long-term investor outcomes for decades:
Markets recover.
Solutions emerge.
Human progress continues.
Choosing to remain invested in the stock market during times of volatility isn’t passive, nor is it just “riding it out.” It’s an active, strategic decision rooted in something far more powerful than predictions: belief in human ingenuity.
