We’ve been here before: Stock markets are turbulent, again

WASHINGTON » Just don’t look. Not now. Not while there are wild swings in the stock market.

Following the daily plunges and surges will only make you sick, or second-guess yourself — emotions that will very likely lead to losses.

I know that’s easier to say than do when you’re an investor and news reports relay every move the market makes.

But we’ve been here before, and not too long ago. Remember March 2020, just as the pandemic began hitting the U.S. hard?

On March 13, 2020, The Washington Post’s website carried this headline: “U.S. stock market suffers worst crash since 1987, as Americans wake up to a new normal of life.”

On that day, the Dow Jones industrial average experienced a 10 percent loss. It marked the Dow’s worst day since the heartstopping Black Monday in October 1987, when the Dow lost more than 22 percent of its value in a single day.

Fast-forward to yearend 2021 — Dec. 31 to be exact — and a headline on The Post’s website read: “2021 goes down as a year of high risk and high reward for markets.”

Here we are just a few weeks into January, and the markets are experiencing quite a bit of volatility.

“I fear investors who are new at this won’t understand what’s going on or what to do, and their inexperience will cause them to let their emotions dictate their actions,” said Ric Edelman, host of “The Truth About Your Future,” a nationally syndicated radio program.

But investors who respond with calm and clarity during such times often reap rewards for their patience.

“I think it’s wise to stay calm and avoid big ‘either-or’ moves, especially moving out of stocks entirely,” said Christine Benz, director of personal finance for Morningstar. “Selling stocks can provide some short-term peace, but it’s often immediately replaced by a nagging worry of, ‘Is it time to get back in?’ “

I made the rounds of financial experts I frequently poll when the stock market is having wild swings. Here’s what they advise for various investors.

YOU’RE NOT INVESTING »

“You’re at risk of missing out on some of the biggest gains as the market recovers,” said Mychal Campos, head of investing for online investment firm Betterment.

As the market dips, this could be a good time to jump into investing. The ideal way to invest is to buy low and sell high, said Ernest Burley, a certified financial planner and owner of Maryland-based Burley Insurance and Financial Services.

“As the market recovers, you have the potential to earn some gains on the ride up,” Burley said. “People often buy high and sell low because they invest purely on emotions. This is a surefire losing strategy.”

YOU’RE A YOUNG ADULT INVESTOR

WITH YEARS TO GO BEFORE

RETIREMENT » “Younger people saving for the long-term future need to have an allocation that allows for growth and use opportunities like the current market upheaval to rebalance their accounts,” said Carolyn McClanahan, a certified financial planner who founded the fee-only Life Planning Partners based in Jacksonville, Fla.

Want to weather turbulent times in the markets?

Start with a solid investment plan.

“Having been through so many market upheavals in my career, I feel like my answer is very boring, and it still works,” McClanahan said. “People should always have a goal for their money, and their investments should be allocated based on their goals.”