Stock Market Insights: Sticking to the Fundamentals – A Steady Approach to Market Volatility

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During volatile markets, I often think of the kids on my baseball team. Picture this: it’s the bottom of the sixth, the bases are loaded, and our pitcher just walked in a run. What happens next? Some kids hang their heads, some get visibly frustrated, and a few start overthinking every play. They’re feeling the pressure, and suddenly, the fundamentals they’ve practiced all season go out the window.

That’s where a coach steps in—not just to call the next play, but to calm them down, refocus their mindset, and remind them: “One pitch at a time. Stick to the fundamentals.” We’ve won plenty of games not because everything went perfectly, but because the team stayed composed and didn’t let one bad inning define the outcome.

Investors are no different during turbulent markets. When stock prices fall, the headlines are scary, and emotions run high, many are tempted to panic—sell everything, or abandon their plan. As a wealth advisor, I’m like that coach on the mound. I help clients step back, focus on the long game, and remember the fundamentals: diversification, long-term goals, and staying invested through ups and downs.

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Recent market conditions have left many investors on edge. As of March 2025, investors are grappling with a convergence of concerns, from uncertainty about the Federal Reserve’s interest rate policy to trade tensions and slowing global economic indicators. Additionally, the technology sector has experienced notable volatility, with previously high-flying stocks like Tesla, Nvidia, Alphabet, and Amazon facing sharp corrections. These factors, coupled with heightened overall market volatility, have created an environment ripe with uncertainty.

Lately, consumer confidence has taken a hit, partly due to statements from top presidential advisers suggesting they’re okay with some short-term market or economic downturns. This, along with widely publicized cuts to federal jobs, has added to the unease. On top of that, the impact of previous interest rate hikes by the Federal Reserve is still being felt, especially in sectors like manufacturing and housing, which have slowed down.

In such times, sharp and sudden market declines are disconcerting. It’s natural for investors to feel compelled to reduce their stock holdings or pull out of the market altogether. The instinct to protect oneself from further losses can be strong, especially amid a stream of negative headlines and falling stock prices.

However, history offers a valuable lesson: financial markets have consistently rebounded from market shocks, often posting strong gains over the long term. Consider past crises—from the dot-com bust to the 2008 financial crisis and the COVID-19 market downturn. In each case, markets recovered, rewarding those who remained invested with substantial long-term gains.

All too often, investors who sell during a market downturn lock in losses and risk missing out on the eventual rebound. Trying to time the market—selling before the worst and buying back before the recovery—is notoriously difficult and often results in missed opportunities. Missing even a few of the best-performing days in the market can significantly impact overall returns.

Instead, staying the course during market volatility can be a wiser strategy. Riding out declines, maintaining a diversified portfolio, and focusing on long-term goals allows investors to benefit from potential rebounds. While no one can predict exactly when a recovery will begin, history shows that patient investors are often rewarded.

While current market conditions are undoubtedly challenging, they are not unprecedented. Just like those young players on my baseball team, often times investors need someone in their corner to keep them from making impulsive decisions under pressure. That behavioral coaching—helping clients stay calm and focused—often makes the biggest difference in achieving long-term success, whether on the field or in the market.

Have a blessed week!

www.FerventWM.com

Joe Shearrer, CPFA® is Vice President and Wealth Advisor at Fervent Wealth Management.

Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.

Opinions voiced above are for general information only & not intended as specific advice or recommendations for any person. All performance cited is historical & is no guarantee of future results. All indices are unmanaged and may not be invested directly.

The economic forecast outlined in this material may not develop as predicted & there can be no guarantee that strategies promoted will be successful.

Fervent Wealth Management is a financial management and services entity in Springfield, Missouri.

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