How to Keep Your Portfolio Balanced During Market Pullbacks
Rising oil prices and global tensions have been shaking stock markets in recent weeks. Oil prices climbing above $100 per barrel raise concerns that higher energy costs could slow the economy and push up inflation. On top of this, investors are also thinking about topics like artificial intelligence, market valuations, and what the Federal Reserve (the U.S. central bank) will do with interest rates. All of this can make investors wonder if their portfolios are in good shape.
When markets move up and down daily, it can be tempting to make frequent changes to a financial plan. But a key idea in investing is that a well-built portfolio — one that holds a good mix of different investments aligned to your goals — is already designed to handle uncertain times. As author Alfred A. Montapert once wrote, “do not confuse motion and progress.” Constant adjustments are rarely necessary or helpful.
Working with a Christian financial advisor in Southwest Florida can provide guidance in navigating market pullbacks with a long-term, stewardship-focused perspective. Rather than reacting to short-term volatility, investors can benefit from a disciplined approach that considers their overall financial plan, risk tolerance, and investment objectives
Market Pullbacks Are A Normal Part Of Investing
Even Short-Term Drops Are Common Throughout Market History
The stock market has been unsteady this year, with the S&P 500 (a widely followed measure of U.S. stock performance) sitting about 5% below its all-time high from January, as of mid-March. This kind of pullback is completely normal. In fact, the average year sees several drops of 5% or more before the market recovers. In 2025, for example, there were six such pullbacks driven mainly by tariffs, yet the market still finished the year with a total return of 18%.
This is why staying invested has historically been the best approach for long-term investors. Trying to time the market — selling when things look bad and buying back in later — is very difficult. The chart above shows that even missing just one week after a volatile period has historically hurt investment results, because the market’s best days tend to come right after its worst ones.
At TrueVine Family Wealth in Naples, FL, we take a holistic approach to planning and investment management by addressing the unique complexities of your business and personal life, ensuring they are mutually aligned to meet your overall strategic goals
Bond yields and what they mean for investors today
Higher Bond Yields Today May Point To Stronger Future Returns
Bonds are investments that pay regular income and can help balance out stock market swings. Right now, bond yields (the income a bond pays relative to its price) are attractive compared to the past decade. The yield on the U.S. Aggregate Bond Index — a broad measure of the U.S. bond market — is currently 4.5%, well above the 2.9% average since 2009. Historically, starting with higher yields has been linked to stronger total returns over time, as the chart above illustrates.
By comparison, keeping money in cash, such as certificates of deposit, currently yields around $155 per year on a $10,000 investment. That is still below the current inflation rate of 2.5% to 3%, meaning cash is actually losing purchasing power over time. A proper allocation to bonds remains a better way to generate income and support long-term growth.
A Diversified Portfolio Helps Smooth Out The Ride
Balanced Portfolios Helped Investors Stay The Course During The 2020 Market Turmoil
Holding a variety of different investments — such as stocks, bonds, and commodities (physical goods like oil and gold) — helps reduce the impact of any single market downturn. The chart above highlights the pandemic-driven market volatility of 2020. Portfolios that were more balanced across different asset classes experienced smaller swings, making it easier for investors to stay calm and avoid making decisions they might later regret.
The goal of diversification is not to predict which investment will perform best next. It is to make sure that when one part of your portfolio struggles, another part can provide balance. Over time, this approach has helped investors grow their wealth while managing risk.
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Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of any subjects discussed. All expressions of opinion reflect the judgment of the authors on the date of the post and are subject to change. Blog posts were prepared by Clearnomics, a third-party content provider.
You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Estate planning rules and regulations are subject to change at any time.
All investments have the potential for profit or loss. Different types of investments and strategies involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. Asset allocation, rebalancing, and diversification will not necessarily improve a client’s returns and cannot eliminate the risk of investment losses.
Historical performance returns for investment indexes and/or categories, usually do not deduct transaction and/or custodial charges or an advisory fee, which would decrease historical performance results. There are no guarantees that an investor’s portfolio will match or outperform a specific benchmark. Historical returns do not represent the performance of TrueVine or any of its advisory clients.
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