Don’t Panic: Staying Invested Amidst Global and Domestic Tensions | AWM Insights #206

Treat volatility like part of the season

In pro sports, a single play can change the tempo of a game, but no champion scraps their entire strategy based on the outcome of one drive. The same applies when headlines turn volatile; global conflict, oil price spikes, and domestic political tension might push you toward reaction. But your family’s legacy isn’t decided by a single quarter; it’s built through consistent, intentional strategy.

At AWM Capital, we design every client’s plan with purpose. When uncertainty rolls in, we don’t call for a new playbook. Like a seasoned coaching staff, we measure response across seasons, not single headlines. Let short-term shocks remain just that—a small part of a much bigger story.

The proven cost of missing the best days

The urge to get out of the market after a bad day—or even a wild week—can be powerful. But data tells a different story. Suppose you put $1,000 in the S&P 500 from 1990 to 2023. Stay invested, and you would have $27,000. Miss just the single best day, and that falls to $24,000. Miss the five best days, and you end up with $17,000. If you sit out the best 15 days, your $1,000 only grows to $9,000. Out of 12,000 trading days, those few are difference makers.

It’s like removing every highlight play from your career stats and expecting the Hall of Fame committee not to notice. Market timing means trying to thread a needle that nearly no one can; time in the market, with unwavering discipline, is what keeps your long-term goals in reach.

Keep political opinions off your roster

Election years and policy debates always create noise. It’s easy to feel your beliefs should influence your investment moves. Yet history shows that over time, markets trend up regardless of who holds power. Slicing historical returns by party control never yields a game-winning edge.

The AWM playbook is clear; don’t vote with your portfolio. Make your voice heard at the ballot box, but let your wealth strategy be guided by long-term data and proven process. Don’t be emotionally reactive—let discipline keep your family’s legacy on track, no matter what the headlines say.

Control what you can and trust your process

Amid all the noise, take ownership of the variables within your reach. That means checking your emotions, connecting with your front office team, and leaning into the approach you set from day one. Time in the market matters far more than trying to pick the right moment to act. Uncertainty and risk are why you should expect higher returns by investing in the market. If questions arise, reach out to your team; we are here to ensure your portfolio remains aligned with your family’s priorities and values.

Own your wealth, make an impact, and always be a pro.

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