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Stock markets rose on Tuesday, the last trading day of March, on hopes for an end to the Iran war. But it hasn’t been an easy month for investors.
In March, S&P500, dow jones and Nasdaq The indexes each fell about 5%, capping a declining quarter.
Investors may want to brace for more dramatic swings. Jack Manley, global market strategist at JPMorgan Asset Management, said the market will be “very sensitive to headlines, both positive and negative.”
“Now is still a good time to take risks, but please recognize that this year is going to be a choppy and bumpy journey,” Manley said.
Nervous investors may want to avoid market turmoil, but those who move in and out of investments are likely to lose the most, according to data from JPMorgan Asset Management.
The firm’s analysis of S&P 500 data shows that over the past 20 years, six out of the 10 best market days occurred within two weeks of the 10 worst days. The second worst day of 2020, March 12th, was immediately followed by the second best day of the year.
According to JPMorgan Asset Management, investors who remain fully invested will receive the best returns. The company’s data shows that the more investors jump in and out of the market and miss the “best days,” the worse their returns will be.
Manley said maintaining diversification can also help navigate volatility.
US stocks are ‘the best place to create wealth’
The “set it and forget it” S&P 500 index investment strategy of large-cap U.S. stocks has been successful, posting double-digit gains for three consecutive years. In 2025 it was about 16%, in 2024 it was about 23%, and in 2023 it was 24%.
The S&P 500 index is down about 3.5% since the beginning of the year, falling short of matching its gains in 2026.
“Any year could be a bad year for U.S. stock investors,” Manley said. “But over the long term, history clearly shows that U.S. stocks are the best place to create wealth.”
While headlines about the Iran conflict rattled markets, other events, such as the US intervention in Venezuela, talk of buying Greenland and the collapse of Japan’s bond market, were already adding to the uncertainty.
“It’s not like this market was on fire before the conflict started,” Manley said.
To prepare for future market turbulence, Manley said it’s best to stay diversified with exposure to categories such as international bonds and real estate and hard assets that don’t correlate with market returns.
Having a plan in place can also help investors change course when unexpected emotional or stressful events occur, said Brian Schmehill, a certified financial planner and managing director of wealth management at Mother Group in Chicago.
Ideally, this would include enough cash to meet short-term goals and a “proper plan” for long-term investments, Schmehir said.
According to Schmehir, by regularly rebalancing and understanding their personal risk tolerance, investors are more likely to stay the course rather than bailing out when portfolio balance or sentiment reaches uncomfortable levels.
Using a reputable financial advisor as a sounding board can also be helpful, Schmehir said.
“Everyone expects wealth advisors to pick the best stocks or provide the best tax strategies,” Schmehir said. “That’s true, but in the age of AI, a lot of that will be at stake.”
“What’s really important is to have someone who understands your emotions,” he says.
