Worried About the Market? You Should Be Thinking About This Instead
Here’s how to approach uncertain financial times.
Hi everyone,
Last week I talked about the investing blind spots we all have that reveal themselves when markets drop day after day. This week, the question coming at me from all sides has more urgency: What should I do right now?
I want to point out an even more important question: what not to do?
Headlines give us a mix of information that comes with a lot of noise. Stocks are lower but bouncing back, energy prices are climbing, a full tank of gas is hitting $60–80 depending on where you are. That’s real, and it’s on the front page everyday.
But zoom out a bit, because what’s really moving underneath is what counts.
Oil prices have spiked to around $107–108 a barrel, and diesel prices matter because it’s the fuel that hauls almost everything we buy. When diesel gets over $5 a gallon nationally, it doesn’t just hit truckers; it ripples straight into the cost of groceries, goods, everything we buy on Amazon. That’s classic inflation coming through the supply chain.
For some context: over the past three years, the S&P 500 racked up total returns of roughly 26%, 25%, and 18%. That’s an epic run, and it’s what has shaped a lot of retirement portfolios. We’ve all been heavily exposed to the stocks that have been winning.
At the same time, advisor Jeff George, CFA in our Wealthramp network, pointed out when I was on Yahoo Finance last week that a lot of people simply don’t have enough exposure to the stocks that tend to hold up, or even shine, when inflation is rising. I’m talking about energy, commodities, mining stocks, real assets.
It’s not a mistake. It’s just what happens when you believe your broad S&P index fund is diversified in a meaningful way, but the S&P index has had little exposure to the kinds of stocks that protect you because tech is now so heavily weighted.
Right now, the markets are being pulled in different directions. The economic signals are mixed. Growth feels uncertain, inflation is real, and interest rates are anyone’s guess. It’s hard to build a plan around mixed signals.
Here’s my perspective. Don’t try to know everything. Instead, build your plan for resilience. (You can always find an advisor to help with a plan anytime at Wealthramp.com by answering a few quick questions. It’s free and we never sell your personal information).
Think of your portfolio like a really good shock absorber on your car. It doesn’t need perfect road conditions. It has to be able to handle bumps, potholes, and sudden turns without falling apart. That’s the mindset that matters.
What to Watch Right Now
Energy prices: Rising oil and diesel feed directly into broader inflation and everyday costs.
Interest rates: Higher rates add another layer of uncertainty.
Your actual exposure: Not what you think you own, but how your holdings really behave in different environments.
What to Do Right Now
Focus on resilience as your goal, not prediction or outsmarting the stock market. You don’t have to nail the next move. You need a setup that can weather more than one scenario.
Ask: How does my portfolio hold up if inflation stays higher? If growth slows? If market leadership rotates?
Look for gaps, not just trends. Where might you be light on assets that tend to move up when stocks move down?
Make the adjustments where needed, if needed. This doesn’t need to be a full overhaul. It’s to fortify any weak spots so shocks don’t derail you.
What Not to Do
Avoid chasing what’s already been working. By the time it’s everywhere in the news, the move has often already happened.
Don’t confuse owning lots of funds with true diversification.
Resist reacting to short-term noise and focus on your long-term plan.
The best question to answer right now is this: If things shift again, will my portfolio hold up the way I expect?
Most people haven’t really stress-tested it through that lens lately. And many don’t realize that fee-only advisors will help them do exactly this. Pressure-testing doesn’t mean making big, dramatic changes. It’s about knowing what you own, how it behaves in different environments, and making sure it’s built to handle more than just sunshine and blue skies.
Last week, a lot of people suddenly realized they had blind spots. This week, focus on resilience to move through them.
Diversification wins all battles. I’ve said it a thousand times on my MoneyTrack series. When people ask what resilience really means, it’s true diversification that allows you to bounce back quickly and strongly after challenges, setbacks, or stress. And that’s exactly what we’re aiming for, in portfolios and in life.
Don’t just assume you’re truly diversified. Let’s look under the hood.
I always love hearing your experiences. Drop me a line anytime.
Pam