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Since 1950, the US has weathered 11 recessions, proving time and again that downturns aren’t a question of if, but when.
After a strong performance from the S&P 500 in 2024 — which experts hailed as a “very good year” — storm clouds are forming. Trump’s aggressive tariff policies have rattled markets with the S&P 500 entering correction territory in April 2025.
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Times like these may have long-term investors wondering what they should do to protect their portfolios. The answer? Do nothing and stay the course.
“Generally, the advice boils down to staying invested. But I firmly believe that just saying ‘stay invested’ doesn’t work on days when stocks are in free-fall and the world feels terrible,” Callie Cox, chief market strategist for Ritholtz Wealth Management, said to The Washington Post.
“We’re not robots, we’re humans with emotions, and we need to honor that in times like these.”
Why you shouldn’t panic sell
Watching the portfolio you’ve built for retirement fluctuate can be unsettling, especially when market downturns threaten the very assets you plan to rely on.
However, selling and moving your money to the sidelines is typically not the best course of action.
“Seventy-eight percent of the stock market’s best days have occurred during a bear market or during the first two months of a bull market,” according to Hartford Funds, an asset management firm that includes Schroders and Wellington Management. “If you missed the market’s 10 best days over the past 30 years, your returns would have been cut in half. And missing the best 30 days would have reduced your returns by an astonishing 83%.”
The importance of a diversified portfolio
One way for investors to diversify a portfolio is by buying into international assets, with well-known asset management firm Vanguard suggesting at least 20% in international stocks and bonds as a benchmark.
However, diversification isn’t just about protecting your portfolio — it’s about building resilience. That’s why holding investments beyond the S&P 500 can act as a cushion when the economy hits a rough patch.
But stocks aren’t the only way to diversify your portfolio.New investing platforms are making it easier than ever to tap into the real estate market.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
If you’re not an accredited investor, crowdfunding platforms like Arrived allows you to enter the real estate market for as little as $100.
Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.
Another popular hedge against inflation with investors is gold, which historically performs well when the market is shaky, and hit an all-time high in early April.
When you open a gold IRA with the help of Priority Gold, you can roll over existing 401(k) or IRA accounts into a precious metals IRA without tax-related penalties. Qualifying purchases can also receive up to $10,000 in free silver.
Learn more about why Priority Gold has 5-star reviews on Trustpilot and the Better Business Bureau when you download their free 2024 guide on investing in precious metals.
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Nearing retirement
As you near retirement, market volatility and ongoing inflation can make the road ahead feel precarious, but reacting to short-term turbulence with long-term portfolio changes can be a costly misstep. Instead it can pay to prepare your portfolio for retirement by slowly switching your investments to low-risk options.
Christine Benz, director of personal finance and retirement planning at Morningstar, told The Post that allocating 25% to 30% of your portfolio to short and intermediate-term bonds is a good approach for those approaching retirement.
But make sure you don’t give up on growth entirely.
“Remember that even though retirement is a few years away, that is just the start of retirement,” Corbin Blackwell, senior manager of financial planning at Betterment, told The Post. “For most people, their money needs to last decades, so don’t lose sight of your real-time horizon.”
If you’re unsure of the best approach for you, it might be worth speaking with a financial advisor who can help craft a retirement strategy that fits your goals — and gives you peace of mind as you step into your next chapter.
Advisor.com can help you find someone that’s right for you.
This online platform connects you with vetted financial advisors in minutes. How it works is easy: Just answer a few quick questions about yourself and your finances, and the platform will match you with a financial advisor best suited to helping you make your money last in retirement.
From here, you can view their profile, read past client reviews and schedule an initial consultation for free with no obligation to hire.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
