How investors can approach markets’ ‘choppy, bumpy ride’: analyst
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The stock market rose on Tuesday, the last trading day of March, inspired by hopes for an end to the Iran war. But it hasn’t been an easy month for investors.
In March, S&P 500, Dow Jones And Nasdaq The indexes fell around 5% each, ending the losing quarter.
Investors may want to brace themselves for more dramatic swings: Markets are poised to be “extremely sensitive to both positive and negative headlines,” said Jack Manley, global market strategist at JPMorgan Asset Management.
“Now is still a good time to take risks, but be aware that it will be a bumpy ride throughout this year,” Manley said.
Although nervous investors should be prepared for market turmoil, those who move in and out of investments will suffer the most losses, according to data from JPMorgan Asset Management.
According to the firm’s report, six of the market’s 10 best days over the past two decades occurred within two weeks of its 10 worst days. Analysis of S&P 500 data. The second worst day of 2020, March 12, was immediately followed by the second best day of the year.
JPMorgan Asset Management found that investors who remain fully invested will achieve the best returns. The company’s data shows that the more investors miss the “best days” by jumping in and out of markets, the worse their returns are.
It also helps maintain diversification to better weather volatility, Manley said.
US stocks ‘a great place to create wealth’
S&P 500 index investment strategy of large-cap U.S. stocks has been a winner with double-digit gains for three consecutive years – around 16% in 2025, 23% in 2024 and 24% in 2023.
The S&P 500 is not on pace to match these gains in 2026, as it is down about 3.5% to date.
“In any given year, you can have a bad year as a U.S. stock investor,” Manley said. “But over the long term, history has shown very clearly that U.S. stocks are a great place to create wealth.”
While headlines about the conflict in Iran were driving the markets, other events such as US intervention in Venezuela, rumors of the Greenland purchase and the collapse of the Japanese bond market were already increasing uncertainty.
“This market was not in flames before the shooting started,” Manley said.
To prepare for possible market fluctuations, Manley said it’s best to stay diversified with exposure to international, fixed income and other categories unrelated to market returns, such as real estate or real estate.
Having a plan can also help investors stay the course when emotional or stressful unexpected events arise, said Brian Schmehil, certified financial planner and managing director of wealth management at The Mather Group in Chicago.
Ideally, this includes enough cash for short-term goals and a “good game plan” for long-term investments, Schmehil said.
By rebalancing regularly and understanding your personal risk tolerance, investors have a better chance of staying the course rather than bailing when portfolio balances or emotions reach uncomfortable levels, according to Schmehil.
It also helps to use a reputable financial advisor as a sounding board, Schmehil said.
“Everyone thinks the wealth advisor should pick the best stocks or give you the best tax strategy,” Schmehil said. “That’s true, but with the age of artificial intelligence, much of this will remain on the table.”
“What’s really important is having someone who can understand your feelings,” she said.
