When global tensions rise and headlines signal instability, financial markets often respond with volatility. But according to wealth manager George Young of Villere & Company, how investors should react depends largely on where they are in life.
“Unrest has always created market swings,” Young says. “But historically, markets have also found a way to settle. The key is not letting panic dictate your decisions.”
Young breaks investors into three primary categories:
1. Not Near Retirement
“If you’re decades away from retirement, you likely do nothing,” Young explains. “Your investment goals are long-term. Short-term volatility, while uncomfortable, has not historically derailed long-term growth.”
He stresses that market downturns are often temporary in the grand scheme. “Reacting emotionally can do more harm than the volatility itself.”
2. Nearing Retirement
For those approaching retirement, Young suggests a careful review, not a dramatic shift.
“You don’t panic,” he says. “But you do evaluate how much of your portfolio is participating in the current swings versus how much is in longer-term, more stable positions. It’s about managing exposure while protecting what you’ve built.”
The goal at this stage is reducing unnecessary risk while maintaining some growth potential.
3. Already Retired
For retirees, income stability is the priority.
“Your main objective is securing enough to sustain your current financial situation,” Young says. “But you also have to remember that retirement can last 20, 30 years or more. You still need growth.”
Again, panic is not the answer. “Making rash decisions during volatility can lock in losses that would otherwise recover over time.”
Thinking About Investing Now?
Even amid uncertainty, Young says opportunity exists.
“There’s never necessarily a bad time to enter the market,” he says. “But if you’re going in now, keep diversification at the forefront. Don’t bet everything in one place.”
His closing advice is consistent across every category:
“Don’t make panic an option. Markets have weathered wars, recessions, and crises before. History shows they find a way forward.”