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What investors need to know during times of turbulence

Mon, May 5, 2025, 6:59 AM 3 min read

"I think right now the phrase that people should take away is to not be a hero," Ritholtz Wealth Management chief market strategist Callie Cox told Yahoo Finance Executive Editor Brian Sozzi on the Opening Bid podcast (see video above or listen below). "I think the smartest thing you can do right now, and this is an investor of any age, is to set a process."

Retirement is a common example of why we invest. “Essentially, you know when you're going to need that money,” said Cox, who advises investors to stay focused on their "why," especially during uncertain moments. “We want to be able to live off of our portfolios one day. And if that's your why, then bam, you have a starting point.”

It can be difficult for an investor to concentrate on their why right now. In April, when the Trump administration kicked off "Liberation Day" and imposed substantial tariffs on imports, markets skidded in response, tumbling to lows on April 7 before rebounding. During the free fall, advisers were peppered with questions about where to put their investments.

Cox admitted that during the chaos, she was supposed to go into the office, and instead, “I stayed home because I did not have time to brush my teeth.”

Though stocks have a continued track record of being the best bet against beating inflation, other options like fixed income, alternative investments, and private investments remain accessible, said Cox, who added that gold (GC=F) is still doing well. “I wouldn't get too crazy,” she said. “A lot of investors don't need a super complex portfolio.”

During anxious episodes, Cox's goal is to reassure clients. “Yes, markets are selling off. But at the same time, you have the ability to set yourself up for the future and to lean back on a lot of really strong history on how this works,” Cox said. “Breathe a little bit. It's OK. You don't have to hit a home run in this moment. You just need consistent returns for long enough.”

It's also tempting to consider piling into individual names that are less vulnerable right now, but Cox advises taking it easy.

"Single stock picking is really, really tough in this environment, especially if you're investing for days, weeks, months, because you're exposed to a lot of headlines, and we've seen some crazy headlines over the past few months," she said. "Just know that you know at market bottoms, when a lot of stocks have been hit, maybe some unfairly, it is smarter to think broadly when you're investing your money."

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