How to Stay Grounded During Market Volatility: Three Rules for Uncertain Times

Apr 4

Market volatility can feel overwhelming—especially when headlines shift quickly, and political decisions trigger sudden reactions in global markets. For many of you, we weren’t working together during the Great Financial Crisis, so I want to reintroduce the three simple rules that help preserve clarity, discipline, and emotional stability during uncertain times.

These rules held true in 2008, during COVID-19, and again today.

The Three Rules of a Financial Crisis

Rule #1: Avoid constant financial news consumption. Endless updates rarely provide useful insight, but they almost always increase stress and short-term thinking.

Rule #2: If you need to watch TV, choose something you genuinely enjoy. Your mindset matters more than minute-by-minute market information.

Rule #3: Don’t check your portfolio or expect your advisor to predict the future. Advisors don’t forecast geopolitical shocks—we prepare for cycles, slowdowns, and long-term patterns. Reacting impulsively to headlines is where the real risk lies.

What’s Happening in the Markets Right Now

Recent tariff policies have introduced a new layer of uncertainty. The U.S. announced sweeping tariff increases—broad in scope, unexpected in speed, and large enough to materially impact global trade dynamics.

Key points:

The tariff increase is one of the most significant since the late 1960s.
Tariffs now apply to a wide range of countries, not just traditional trading partners.
Markets reacted quickly because the scope was broader than expected.

The administration cited several reasons:

Correcting trade imbalances (a legitimate long-term issue)
Addressing national security risks in supply chains
Encouraging domestic job growth, though unemployment remains historically low

This environment may create volatility, but it is not unfamiliar territory.

Possible Economic Paths Forward

Best-case scenario: Negotiations move quickly, tariffs narrow, and markets stabilize.

Worst-case scenario: Tariffs remain in place longer-term, manufacturing shifts, and global growth slows.

Meanwhile, the Federal Reserve may be forced to cut rates more aggressively than anticipated—balancing inflation pressure with slower economic growth. Retaliatory moves from foreign governments could also temporarily disrupt the flow of global capital.

So, How Concerning Is This?

Compared with past crises—9/11, the 2008–2009 recession, and COVID-19—today’s situation shares one important advantage:

We know the source of the uncertainty. And unlike a pandemic or systemic financial failure, this source is controllable. Markets dislike surprises, but they are also resilient, especially when risks can be negotiated away.

Investor behavior reflects this: despite the noise, markets are not behaving as though the worst-case scenario is likely.

Our Investment Perspective at Pereon Wealth

Importantly, much of our work together this year put us in a healthy position before the headlines broke:

We trimmed exposure to overheated areas of the market, especially crowded tech trades.
We increased allocations to high-quality companies with durable balance sheets and a history of steady dividends.
Many of you saw us systematically take profits from high-performing equities and reallocate into asset-backed and securitized fixed income yielding 6–12%.
Younger investors benefited from consistent, disciplined equity buying.
More mature investors reduced unnecessary concentration risk.

Before this week, stock valuations were stretched, volatility was unusually low, and many investors had been conditioned to “buy every dip.” When markets shift quickly—from calm to chaotic—it creates emotional volatility, not just financial volatility.

This is exactly when long-term discipline matters most.

What We’re Doing Right Now

We’re still early into this period of uncertainty. At this stage:

We are not raising cash
We are not moving to the sidelines
We are continuing to monitor opportunities, not risks alone

If markets continue to decline meaningfully (another 7–10%), we will begin gradually rotating from bonds to stocks—in measured tranches of ~10% of fixed income. This approach lets us add long-term value without trying to guess the bottom.

In other words: we stay patient, stay selective, and stay rational. (For more details on how we manage fixed income allocations, see How We Work.)

A Final Thought on Keeping Perspective

It’s natural to feel frustrated, anxious, or confused when markets react sharply. That’s human. But it’s also crucial to step back and remember how far you’ve come over the past few years and how your plan is built to withstand periods exactly like this.

Tomorrow is my son Max’s Little League opening day, and I’m looking forward to being fully present. That’s my reminder to turn off the noise—and I encourage you to do the same.

After all, no one can put a tariff on your weekend.

If you have questions about your allocation or broader financial plan, feel free to reach out. Or learn more about who we are and why we do what we do on our About Pereon Wealth page.