Written by: The Advisory Team

When markets swing, it’s natural to feel pulled toward action. Headlines trigger emotions. Portfolios fluctuate. And for many investors—especially those in or near retirement— questions like “Should I make a move?” or “Is this time different?” are common and understandable.

Here’s the truth: staying put during turbulent markets is not doing nothing. It’s making a deliberate choice. A thoughtful one. A strategic one.

That doesn’t mean ignoring change. Life evolves, and so should your financial plan. Adjustments made due to real-life events—like retirement, a new job, a move, or a change in health—are wise and necessary. These are thoughtful planning decisions. But responding emotionally to short-term market movements is a different path—one that often falls outside the framework of a long-term strategy. Staying aligned with your plan means making decisions based on goals, not headlines.

For those nearing or in retirement, there’s often another layer of confidence to lean on: diversification. Most retirement-focused portfolios aren’t fully exposed to the stock market. They typically include a mix of assets—cash, bonds, annuities, or other lower-volatility investments—that can act as a ballast during equity declines. These resources can help provide income and peace of mind while equity markets work through periods of recovery.

Historical data may not predict the future, but it can offer context. Since 1929, the S&P 500 has experienced 16 bear markets—defined as a decline of 20% or more. On average, those downturns involved a -34.2% drop, took about 253 days (roughly eight months) to hit bottom, and approximately 535 days (a year and a half) to recover.

However, these numbers are heavily influenced by one outlier: the Great Depression. During that time, the market fell by -83.9% and didn’t fully recover for more than 10 years. Excluding this extreme event, a clearer picture emerges:

  • Average decline: -30.9%
  • Average time to bottom: 213 days (about 7 months)
  • Average recovery time: 322 days (under 11 months)

The range of recovery times—again, excluding the Great Depression—spans from as short as 39 days to as long as 1,017 days and with 9 out of 15 events recovering within the year. While no one can say with certainty what the current market will do, this historical context helps frame the possible duration of past downturns and recoveries.

One of the most vivid recent examples is the COVID-19 market decline in early 2020. Within just three weeks, the market dropped over 30%. It was swift and unsettling. Yet by the end of that same year, markets had recovered and reached new highs. Not every recovery happens that quickly, but it’s a reminder of how unpredictable markets can be in both directions.

Making the decision to “do nothing” amid volatility is not passive—it’s an act of discipline. It reflects a commitment to your long-term plan and a recognition that the market’s ups and downs are a normal part of investing. It’s understanding that you’ve already made smart choices to help weather downturns, such as building a diversified portfolio and keeping your plan aligned with your personal goals.

As your advisors, we’re here to guide you through both the highs and the lows. That means being proactive about what really matters—your life, your goals, and your financial security. If something in your life changes, let’s talk. But if it’s just the market moving, it may be more powerful to stay steady.

Because sometimes, the most meaningful action you can take—is choosing not to react.

*Past performance is not a guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio. Short-term performance results should be considered in connection with longer-term performance results. Index returns are not representative of actual portfolios and do not reflect costs and fees associated with an actual investment. Includes any decline of 20% or more beginning the day after a new all-time high for the market. Recovery is defined as the first day when the cumulative return since the previous market high is no longer negative. Us stock market represented by the Fama/French Total Us market Research Index.