Advice for investing in volatile market from financial experts

Apr 17, 2018, 9:04 PM | Updated: Feb 7, 2023, 11:21 am

SALT LAKE CITY, Utah – Wall Street has been all over the map since February. The Dow Jones Industrials plunges 1,100 points in a single day, swings back up with one of its best days, only to drop again.

“I’m a little in the red at the moment, I have to be honest. Things have been a little difficult for me.” said Brian Miller of his stock investments. He studies financial planning at Utah Valley University. “I’m still quite new and I’m learning the strategies.”

While a little rattled by Wall Street’s wild swings, Miller says he’s not about to sell off his stocks.

“When there’s a lot of volatility, when there’s a lot of craziness going on, my natural instinct is to diversify,” he explained. “If you hold different types of stocks that are inversely correlated, than in general, you’ll be protected from the big ups and the big downs.”

Instead of staying focused on what he’s losing, Miller is focused on what he could be buying.

“When the market does what it’s doing right now, I look for more opportunities to put more money in. You can buy things on sale is basically what that dip in the market is,” said Miller.

Certified financial planner Shane Stewart says one thing all investors should do in a volatile market is stay calm.

“Be measured, don’t be too reactionary,” Stewart said. “It’s easy to see a headline and want to react, to want to quickly change things.”

So, don’t do anything rash like selling off all your stocks.

“It’s better to be prudent and ride things out,” Stewart explained. “We don’t know when the market is going to have its best day. The market could have a terrible downtown but have a great day, and if you miss out on one or two great days, you’ll miss out on those returns.”

Another factor is how soon you need the money from your investments. If you’re approaching retirement, you have less time to make up a loss, so consider investing in fewer stocks and more of something more stable and conservative, like bonds.

“If you’re further away from needing the money, you can lean heavier in stock and you can ride the wild ride of ups and downs,” Stewart explained . “If you’re closer to using the money, look into things like bonds and cash. This is a great time to make sure you’re in the proper mix.”

Another stable investment possibility is dividend stocks from more established companies like 3M, Boeing and Verizon. They tend to weather wild markets better. Plus, they’ll pay you a part of their earnings simply because you own their stock.

Miller has made one change that’s freed him of an anxiety that often leads investors to rash decisions. He no longer checks his stocks constantly.

“It’ll drive me crazy,” Miller said. “If I’m watching those little bars forming bouncing up and down, minute to minute, I’ll go crazy. It’s very stressful.”

KSL 5 TV Live

Top Stories


Chopper 5 flies over the site of a new golf course by Tiger Woods set to open near Heber and Park C...
Alex Cabrero

New golf course designed by Tiger Woods set to open in 2025 Park City area

A new golf course set to come to the Park City area is being designed by Tiger Woods. While it may be exciting, it has a lot of people wondering about the water it will take to run it.
2 days ago
Katija Stjepovic

Utah arts and cultural jobs are surging after COVID pandemic

The COVID-19 pandemic pulled the curtains on most of Utah's arts and cultural jobs, but after nearly three years, they are reemerging. 
2 days ago
Tamara Vaifanua

Tips to reduce your utility bills this winter

A lot of Utahns are shelling out more to keep their homes warm this winter -- about 17% more due to inflation.
2 days ago
Matt Gephardt and Sloan Schrage

Shopping for Valentine’s roses? 9 comparisons to help you find the biggest bang for your buck

From online and local florist delivery options to grocery store blooms, KSL’s Matt Gephardt compares the cost and durability of nine different bouquets of a dozen red roses.
3 days ago
Utahns filling up their cars with gas. (KSL-TV)...
Matt Rascon

Gas prices jump 26 cents in one week, Utah governor blames supply

Gas prices have shot up more than usual in January, with increases Utahns generally see in March, and Gov. Cox said closed refineries and increased demand is to blame.
3 days ago
ATLANTA, GEORGIA - NOVEMBER 10: In this photo illustration, the FTX website is seen on a computer o...
Allison Morrow

FTX to politicians: Give us back our donations or we’ll sue you

New FTX management is pressuring hundreds of politicians and political organizations to return millions of dollars donated by them or its founders before it went bankrupt.
3 days ago

Sponsored Articles

vintage photo of lighting showroom featuring chandeliers, lamps, wall lights and mirrors...
Lighting Design

History of Lighting Design | Over 25 Years of Providing Utah With the Latest Trends and Styles

Read about the history of Lighting Design, a family-owned and operated business that paved the way for the lighting industry in Utah.
Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports...
Brian Huston, CE and Anthony Perkins, BICSI

Why Every Business Needs a Structured Cabling System

A structured cabling system benefits businesses by giving you faster processing speeds and making your network more efficient and reliable.
notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 Reasons You May Want to Consider Apartment Life Over Owning a Home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Advice for investing in volatile market from financial experts