Panic Methodically: How to keep your cool when the stock market is anything but

When the headlines scream chaos and the markets seem to free-fall, it’s natural to feel like panicking. But instead of pulling your hair out and screaming into a pillow, add some method to the madness.

This week, I sought inspiration from Wall Street Journalist Columnist Jason Zweig, who said “If you must panic, panic methodically.” Matt Robison and I tackled the overwhelming question: “What should I do now?” as market volatility, political drama, and economic uncertainty surge around us. Here’s the key takeaway: don’t confuse the noise of the world with the logic of your long-term investing strategy.

Separate the Chaos From Your Portfolio

The stock market and the political/economic headlines you see every day aren’t always directly correlated. Experts who predict market moves based on current events are often wrong. Trying to time the market based on today’s news is not only exhausting — it’s ineffective.

Instead, recognize that market downturns are normal. Historically, a 10–20% drop happens every few years. Your portfolio should be built expecting this kind of fluctuation.

Know Yourself and Plan for It

The most important preparation isn’t about predicting the future — it’s about knowing your risk tolerance.

• If market swings make you obsessively refresh your investment accounts and lose sleep, you may be too aggressively invested.
• If you can “strategically put your head in the sand” and ignore short-term turbulence, you’re probably in a good spot.

Use volatile moments as a real-world gut check: How did you actually feel when the market dropped? That reaction can guide whether you need to adjust your asset allocation — not what you read in the news.

Make Methodical Adjustments, Not Panicked Ones

What does panicking methodically look like in practice with regard to assessing your portfolio?

• Revisit diversification: Check if your portfolio is well-balanced between U.S. and international stocks, bonds, and other assets.
• Rebalance if needed: If stocks have outpaced your targets (or dropped heavily), rebalancing helps you sell high and buy low — automatically and calmly.
• Tax-loss harvest: If you have taxable accounts, you may be able to sell losing positions to lower your tax bill while reinvesting smartly.

These are thoughtful, strategic moves — not knee-jerk reactions to the latest scary headline.

Remember the “Buddy Tape Principle”

Emergency room doctors have wisdom that reaches far beyond the walls of a hospital. Take Matt’s wife, for instance, and her Buddy Tape Principle. She had a patient that came in with what appeared to be a broken toe. Matt asked her: “so, did you x-ray it?” She didn’t. Puzzled, Matt asked why and she said “because the treatment is the same whether it is broken, sprained, or bruised. I am buddy taping it.” 

The point? Only seek new information if it will actually change what you do. Doomscrolling news that won’t change your investment behavior is useless, and often does more harm than good. Another wise idiom of doctors: do no harm.In wild times, the smartest investors are the ones who stay calm, stay diversified, and act methodically. Review your portfolio, understand your risk tolerance, make smart tweaks, and then get back to living your life.

Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/