1. Keep perspective: Downturns are normal
- Historically, US stocks have experienced 3 downturns of 5% per year, 1 correction of 10% per year, and 1 correction of ~15% every 3 years.
- But while market downturns may be unsettling, history shows stocks have recovered and delivered long-term gains.
Despite market pullbacks, stocks have risen over the long term
![The chart shows monthly returns for the S&P 500 with big downturns highlighted. From Black Monday in the 80s to the COVID-19 volatility in 2020, significant drops that were alarming to live through look like a little bump on the chart with the perspective of time. The chart shows monthly returns for the S&P 500 with big downturns highlighted. From Black Monday in the 80s to the COVID-19 volatility in 2020, significant drops that were alarming to live through look like a little bump on the chart with the perspective of time.](/bin-public/600_Fidelity_Com_English/images/learning-center/charts-and-graphics/SP500 long term Sept 2023.png)
2. Get a plan you can live with – through market ups and downs
- Your mix of stocks, bonds, and short-term investments will determine your potential returns, but also the likely swings in your portfolio.
- Pick an investment mix that aligns with your goals, timeframe, and financial situation, and you can stick with despite market volatility.
Choose an investment mix you are comfortable with
![](/bin-public/600_Fidelity_Com_English/images/learning-center/charts-and-graphics/diversified portfolio risk October 2023.png)
3. Focus on time in the market – not trying to time the market
- It can be tempting to try to sell out of stocks to avoid downturns, but it’s hard to time it right.
- If you sell and are still on the sidelines during a recovery, it can be difficult to catch up. Missing even a few of the best days in the market can significantly undermine your performance.
![Missing out on the best days can cost investors. Investors who missed out on just a handful of the market's best days significantly reduced their portfolio's value Missing out on the best days can cost investors. Investors who missed out on just a handful of the market's best days significantly reduced their portfolio's value](/bin-public/600_Fidelity_Com_English/images/learning-center/charts-and-graphics/Missing best days 042024.png)
4. Invest consistently, even in bad times
- Some of the best times to buy stocks have been when things seemed the worst.
- Consistent investing can give you the discipline to buy stocks when they are at their cheapest.
- Consider setting a plan for automatic investments.
Investing during recessions has historically led to strong investment results
![The data in the chart is described in the text. The data in the chart is described in the text.](/bin-public/600_Fidelity_Com_English/images/migration/article/content_06/501_NEWBAR.png)
5. Get help to make the most of a down market
- While no one likes to lose money, your financial advisor may be able to help you take advantage of a down market.
- Tax rules may let you use losses on some of your investments to reduce your future tax bills, or use lower share prices to convert to a Roth IRA at a lower tax cost.
- Down markets may also be a good time to meet with your advisor to discuss adjusting your investment mix, or taking advantage of opportunities when prices are low.
6. Consider a hands-off approach
- If you are not comfortable with market risk, consider turning your portfolio over to a professional through a managed account or all-in-1 mutual fund.
- If you don't have a strategy, or think yours may be off track, start planning now with our online tools. Or schedule an appointment with a Fidelity representative. We can help.