Investing in Uncertain Times: 4 Tips to Keep in Mind

May 29, 2025

Share this article

Market turmoil can put even the most confident investors on edge.

While it’s normal to feel a little anxious when the markets take a tumble, it’s important to keep our emotions in check and avoid making rash investment decisions out of fear or panic, which could hurt your portfolio in the long run.

When it comes to investing, basic principles like maintaining a diversified portfolio and staying invested for the long haul are timeless. Ahead, we’ll go over four tips to help you maintain confidence as an investor during times of market uncertainty.

1. Understand the fundamentals of investing and your tolerance for risk

Having a solid understanding of investing can do much to help you maintain a healthy perspective during times of market uncertainty. Many seasoned investors know that volatility is inevitable but that it’s also important to stay invested for the long term because, historically speaking, the value of the stock market has trended upward over time.

Understanding your tolerance for risk can also help you stay level-headed. This is where you ask yourself how much risk you’re willing and able to take on to achieve your particular investment goals. Some people will have a higher tolerance for risk than others (read more here).

Remember, a key part of investing involves the proper balancing of potential risk against potential reward. And having an investment plan or strategy that appropriately reflects your risk tolerance could help you resist the urge to react emotionally during a downturn, giving you the confidence to stay in the game and ride out the turbulence.

2. Review your investments: diversification as a risk management strategy

Risk is an inherent part of investing, and it’s something that you cannot completely eliminate. But risk can be managed with certain investment strategies.

Diversification is one way to help protect your portfolio from the ups and downs of the market. While diversification as a strategy doesn’t guarantee against losses, it can help limit your exposure to certain investment risks.

By diversifying your investments – where you invest in a mix of assets (like bonds, stocks and/or ETFs) — your portfolio can be better positioned to withstand certain market shocks. The idea is that if one asset (e.g., a particular stock) takes a hard hit, other parts of your portfolio may help cushion the blow.

You may also want to check if you need to rebalance your portfolio. Over time, the asset allocation (mix of assets) in your portfolio can shift away from your original allocation. This can happen when certain assets outperform others within a period of time. For example, if your portfolio’s original asset mix contains 60% stocks, a good showing in the stock market from previous quarters could increase your stock allocation to, say, 70%.

When this happens, you may want to consider rebalancing (or resetting) your portfolio to its original allocation to help ensure that your investments still accurately reflect your appetite for risk.

Another question you might ask yourself is whether your particular mix of assets still makes sense for your financial goals. For instance, as you get closer to retirement, you might become more risk-averse, opting to invest in more bonds rather than stocks.

3. Take the long view when it comes to investing: Falling stock prices may present an opportunity

It’s never easy to watch stock prices and portfolio values fall. Inexperienced investors might be tempted to make a quick exit from the market, selling at a loss just to avoid further pain.

When it comes to investing, however, it’s important to take the long view and not let short-term market volatility distract you from your long-term goals. By staying in the game, you’re generally in a good position to reach your long-term investment goals. This is particularly important for those with a long time horizon to keep in mind, as they have more time to ride out the ups and downs of the market.

While falling stock prices might be a troubling sign, you could also look at it as an opportunity to buy at a potential bargain.

If stocks are already a part of your retirement plan (e.g., IRA or 401(k)), by simply maintaining (or increasing) your contributions, you’re in a position to take advantage of the lower stock prices. That’s because your regular contributions would help to purchase additional shares automatically.

It might seem counterintuitive to put more money into a shaky market, but there’s potential for it to pay off in the long run if the market recovers and stock values climb again.

Good to know: If you're still somewhat new to investing, before making any purchases, it’s a good idea to check in with your investment advisor first. When markets are volatile due to economic uncertainty, there's a potential risk that stock prices might continue to drop further before a recovery, so you'll want to talk through any strategies you might be considering with a professional who understands the cyclical nature of the financial markets.

4. Consult with a financial professional

When the markets feel shaky, it helps to know that you don’t have to navigate the turmoil on your own. If you feel anxious, consider checking in with your financial advisor who can help give you some historical perspective on market volatility.

Financial experts can serve as a shelter in the storm, helping you to tune out all the noise and empowering you with options.

They can review your investments with you and discuss any potential actions you may be considering. In a way, volatility in the stock market is a good reminder for investors to revisit their investment strategy and make updates if necessary.

Additional resources from Goldman Sachs

Are you a small business owner?
Goldman Sachs has committed to delivering $550 million across two separate initiatives to help small businesses and communities around the world. Learn more about these initiatives and get access to resources to help small businesses during this unprecedented time at the US Small Business Resource Center.

Want to learn more about how COVID-19 is impacting the economy and markets?
Explore research and insights from Goldman Sachs by visiting gs.com/covid-19.

This article is for informational purposes only and shall not constitute an offer, solicitation, or recommendation. This article was prepared by and approved by Marcus by Goldman Sachs® but is not a description of any of the products or services offered by and does not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, or any of their affiliates, subsidiaries or divisions. Goldman Sachs Bank USA is not providing any financial, economic, legal, accounting, tax or other recommendation in this article and it is not a substitute for individualized professional advice. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA, or any of its affiliates, none of which are a fiduciary with respect to any person or plan by reason of providing the material or content herein. Neither Goldman Sachs Bank USA, nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in this document and any liability therefore is expressly disclaimed. You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format without the express written consent of Goldman Sachs. This foregoing restriction includes, without limitation, using, extracting, downloading or retrieving this information, in whole or in part, to train or finetune a machine learning or artificial intelligence system.