Imagine putting your money in a stock index like the S&P 500, thinking you’re spreading your investment across 500 companies. Makes sense, right? But here’s the kicker: over 30% of the index’s value is now tied up in just a handful of big tech stocks. That means if those tech giants turn south, your whole portfolio could end up hurting. These days, markets react faster and hit harder. So, how do you stay ahead of the game?
When Roller-Coaster Markets Become the Norm
Remember the dot-com bust? Or the 2008 financial meltdown? Back then, those market shocks felt like once-in-a-generation events. Now, it seems like the market throws a tantrum every other week. Why? Partially because the news cycle is in overdrive. But the real issue is how people react—fast and fueled by fear, instead of logic. These days, even an interest rate announcement can send stocks and bonds spinning. If you’re not careful, the noise can convince you to take actions you’ll regret.
Stay Cool When the Market Heats Up
Here’s the deal: you can’t control the market, but you can control how you respond. If you want to keep your sanity and grow your money, you’ve got to be intentional with your strategy. Here’s what that looks like:
- Diversify beyond tech: While historically tech has done well, you shouldn’t invest in just one sector. Spread the risk around.
- Keep a cash cushion: Cash on hand gives you options when the market dips or opportunities arise. It’s like an emergency fund for your investments.
- Quit reacting emotionally: The market tends to bounce around like a toddler on sugar. Don’t panic-sell every time the headlines scream “crisis.”
The bottom line? Stop obsessing over every bump in the road and keep your eye on the long haul. Building wealth is about staying calm, sticking to your plan, and not letting the market’s mood swings mess with your goals.
If you need help keeping an even keel with your U.S. investments, consider a free Cross-Border Financial Evaluation to review your portfolio. Call us at (02) 624-2788 or sign up at profile-financial.com/call to see if and how we can help.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published April 30, 2025.