Aftermath of US and Israeli ground air strikes on Iran
The United States and Israel have launched more than 1,000 attacks against Iran. This is what the damage to the ground looks like.
When the stock market falls off a cliff, the natural urge may be to panic and sell. There’s nothing more stomach-churning than watching your 401(k) sink into the red with no bottom in sight.
And that’s probably how many investors felt on the morning of March 3, when stock indexes plummeted as the Iran conflict escalated.
But panic selling violates two or three basic rules of investing: buy stocks when prices are low and sell when prices are high. Don’t make impulsive movements. Stick to your plan.
Here are some rules to remember when markets are turbulent.
Don’t try to time the market
It may sound appealing to take cash out of the stock market when the index is falling, avoid an economic downturn, and reinvest it when the market bottoms out.
The big problem with this strategy, experts say, is figuring out the right time to withdraw and put in cash.
“Anytime you’re trying to avoid a recession, the risk of being wrong is very high. And you have to be right twice,” St. Louis certified financial planner Peter Lazarov told USA TODAY in a 2025 interview.
As Lazarov explains, you have to make two decisions: when to sell high and when to buy low. That requirement is more difficult than you might think.
Christy Akrian, head of iShares investment strategy for the Americas at BlackRock, told USA TODAY in 2025.
Case in point: On April 9, 2025, amid President Donald Trump’s dramatic tariff campaign, stocks rose dramatically after several days of declines.
Patrick Means, vice president and branch manager of the Schwab branch in Dallas, told USA TODAY in 2025.
This brings us to our second tip.
stick to the plan
Stock prices rise and fall, sometimes dramatically. Experts say the best strategy for long-term investors is usually to sit back and wait for the drama to unfold.
Schwab points out that bear markets are typically shorter than bull markets. Since 1966, the average bear market has lasted about 15 months, while the average bull market has lasted almost six years.
Following a long-term investment plan requires discipline and is one of Vanguard’s investment success principles. Other: Create clear and relevant investment goals. Maintain a balanced and diverse mix of investments. and minimize costs.
“You can’t control the market. You don’t know what the market will do,” James Martini, Vanguard’s head of investment and trading services, told USA TODAY in 2025. “I can control myself by not making emotional decisions.”
And that brings us to our third tip.
do nothing at all
Advisers say today’s stock price movement is less important to long-term investors.
And that advice applies to almost everyone. Experts say stocks may not be for you if you don’t have a long-term outlook.
“If you need the money right away, don’t invest. If you don’t need the money for 15 years, stop looking at volatility,” Randy Bruns, a certified financial planner in Naperville, Illinois, told USA TODAY in 2025.
Market downturns tend to be short-lived. Recessions are shorter than you think. People who save for retirement or other long-term goals are usually able to weather their savings.
“If you can afford to be a long-term investor, by all means be a long-term investor,” Akrian says.
Consider buying stocks at a discount
Financial experts don’t like investors to make impulsive trades, but a drop in the stock market presents an opportunity for those looking to buy stocks on sale.
The stock market has historically been expensive. There are few bargain items. A market correction effectively means that investors may be getting a better deal on the stocks they buy.
If you’re concerned about the volatility of individual stocks, another option is to buy broad-based index funds, which are generally less risky.
Another option, BlackRock’s Akrian said, is to look for “stocks that are less sensitive to volatility.”
Some mutual funds and exchange-traded funds have portfolios that are more predictable than the market as a whole and are tailored to minimize volatility. BlackRock provides an instruction sheet on “Minimum Volatility” investing.
