Discipline, Not Drama
As national and global events trigger waves of market turbulence, how can investors turn short-term uncertainty into a long-term advantage?
by Bill Donahue

As investors brace for what could be another volatile year, financial professionals advise that the conversation around risk should shift from one of pain avoidance to one of preparation. 
 
Michael Henley, CFP®, CPWA®, CRPC®, RMA®, and Peter Kim, CFA®—chief executive officer and chief investment officer, respectively, of Brandywine Private Oak Wealth in Kennett Square, say that periods of uncertainty are best navigated not by reacting to market noise and gloomy headlines, but by ensuring that portfolios are positioned to withstand inevitable market swings.
 
“Investors should be managing their risk and reconfirming their portfolio allocations given the market run over the last couple of years,” Kim explains. Because market gains can cause allocations to drift, quietly altering the balance between growth and protection, reassessing that balance is critical, especially with the likelihood of more turbulence ahead. “People should have a portfolio that can ride through any volatility this year and have enough diversification that some assets balance out the negatives.”
 
While economic data and market signals often dominate investor attention, Kim and Henley stress that psychology may be the most powerful—and problematic—factor at play. 
 
“It is important to keep the psychological signals at bay as much as possible,” Kim adds, “as they are typically running counter to what you should do as an investor.” 
 
Emotional reactions can prompt poor timing decisions that undermine long-term results. At the same time, those emotions cannot simply be ignored. Understanding an investor’s comfort level with volatility is a core part of planning; it can help investors maintain the discipline they need to stay invested when markets take a turn.
 
“No one likes it when the stock market goes down,” Kim says, “but it is a natural part of investing.”
 
The goal, he and Henley emphasize, is to do the strategic work in advance. When a portfolio is fully diversified and aligned with a broader financial plan, short-term economic, market, or psychological signals carry less weight. Having that structure, grounded in research, should instill confidence and help tamp down innate fears.
 
For long-term investors who feel uneasy but know they should not abandon their strategy, Kim and Henley encourage altering one’s mindset. Yes, market downturns are uncomfortable, but they can also useful. 
 
Rather than focusing on temporary declines in value, investors can prepare ways to take advantage of dislocations. One such strategy is having a contingency plan ready. Kim points to tax-planning opportunities that can emerge during sharp market pullbacks, such as increasing Roth conversions during significant declines. In those moments, volatility can nudge investors into repositioning for long-term, tax-efficient growth.
 
In the end, investing through turbulence isn’t about predicting the market’s next move. Rather, it’s about maintaining balance, managing emotions, and being prepared to act thoughtfully when opportunities arise—turning short-term uncertainty into a long-term advantage.
 
We recently asked Michael Brennan, CFP®, planning and portfolio consultant for Key Financial Inc. in West Chester, about investing during times of great volatility. He shared his perspective by email. 
 
Q&A
How should investors think about risk at the start of what will likely be another turbulent year: as something to reduce, something to manage, or something to selectively embrace?
Risk isn’t something investors can eliminate, and trying to do so often creates a different (and possibly scarier) kind of risk—missing long-term opportunity. Risk is, and will always be, a function of time. If there is enough time, you can outlast any volatility. If market risk is too much to handle and you move into CDs, you may get a better night’s sleep, but inflation risk (purchasing power) will be there right when you wake up.
 
At the start of a turbulent year, make sure portfolios are built to withstand uncertainty: diversified across asset classes, styles, and geographies, aligned with time horizon, and grounded in quality. That’s risk management. We go into every day assuming the next wicked bear market will begin today, and asking the question: “If it does, will our clients be OK?”
 
Also, it’s helpful to recognize that volatility itself creates opportunity. I tell my wife, “Market volatility is nothing more than a giant sale, and you love sales!” In the case of the tariff uncertainty of last April, that was the Black Friday equivalent of sales! Periods of discomfort are often when future returns are being set. Selectively embracing risk—by staying invested, rebalancing, and adding exposure when fear is elevated—has historically been more rewarding than pulling back in search of certainty. 
 
Reacting emotionally to short-term turbulence is the No. 1 killer of growth. The more productive mindset is to treat volatility as a feature of markets, not a flaw. When risk is planned for rather than feared, it becomes something investors can use rather than something that controls them. The volatility is simply the price of admission.
 
Are there specific signals—economic, market, or psychological—that you believe matter most for investors right now, and which ones are just noise?
On the economic side: The signal that matters most is not whether growth is slowing or accelerating month to month, but whether the economy continues to absorb higher rates without breaking. Steady job creation, real income growth, and consumer spending holding up tell us the system is adapting, not cracking. Short-term data surprises tend to be noise; durability is the signal.
 
In terms of market perspective: It is a healthy sign when market gains broaden beyond a handful of stocks and include different sectors, sizes, and geographies. Daily market swings or single economic releases often grab attention, but they rarely change long-term outcomes.
 
As for investor psychology: When anxiety remains high even as markets and fundamentals improve, that’s often a constructive backdrop for long-term investors. Extreme confidence or panic tends to matter; the constant drumbeat of commentary and forecasts usually does not. As Warren Buffett said, “Be fearful when others are greedy, and be greedy when others are fearful.” At Key Financial, we focus less on predicting the next move and more on recognizing whether the foundation remains intact. Right now, the signals suggest resilience, while much of the noise is simply the market doing what it always does.
 
For long-term investors who feel uneasy but know they shouldn’t abandon their plan, can you suggest one or two constructive actions they can take this year to regain a sense of control?
Last April, we experienced very uncertain markets and volatility, and I repeatedly said, “The answer to uncertainty isn’t action, the answer is patience—aka, don’t panic!” When investors feel uneasy, the goal isn’t to overhaul the plan; it’s to re-engage with it. One constructive step is to rebalance or review allocations to ensure risk levels still match today’s reality and their long-term goals. That process alone can restore a sense of control by turning emotion into intention. Another constructive step is to focus on what they can control: savings rates, tax efficiency, and cash-flow planning. Small improvements in those areas often matter more over time than reacting to market headlines. Feeling uneasy is natural; staying disciplined while making thoughtful adjustments is how long-term investors turn uncertainty into progress. 
 
As long as there is enough “dry powder” on the sidelines—a year or two in cash—to outlast a bad market downturn, you need not worry what the market is doing day in day out. You will be fine. Sometimes, the best thing an investor can do is nothing. Many of us get FOMO (fear of missing out) and typically will decide to get out or get in at the exact wrong time. Stay the course, stick to the plan. Don’t make long-term decisions based on short-term noise. It’s always best to call your advisor. 
 
Earning Trust
When the time comes for an investor to choose a financial professional to be the steward of his or her future, options abound. The firms and professionals featured here are devoted to protecting and cultivating their clients’ wealth. Each is unique, of course, yet all share a common goal: to provide knowledgeable, honest, thoughtfully researched guidance in service to a client’s precise goals, financially speaking—be it a comfortable retirement, a lasting legacy, or simply some much-needed peace of mind in a largely unpredictable world. 
 
Begnaud Wealth Management Group of Janney Montgomery Scott LLC
Mount Laurel, New Jersey
advisor.janney.com/begnaudwealthmanagementgroup | (856) 291-5032
 
Brandywine Oak Private Wealth
Kennett Square
brandywineoak.com | (484) 785-0050
 
Family Wealth Partners
Medford, New Jersey
familywealthnj.com | (609) 975-8389
 
Financial Group of Philadelphia 
Yardley
philafinancial.com | (215) 396-1500
 
Key Financial Inc.
West Chester
keyfinancialinc.com | (610) 429-9050
 
The Manchester Group of Firstrust Financial Resources
Conshohocken
themanchestergroupffr.com |  (215) 640-3829
 
Russell R. Valante of Janney Montgomery Scott LLC
Blue Bell
advisor.janney.com/russellvalante | (215) 619-3920
 
Yardley Wealth Management Group LLC
Yardley
yardleywealth.net | (267) 573-1019
  
Published (and copyrighted) in Suburban Life, December 2025.