When stock markets are unsettled, being patient can benefit investors.

March 12, 2026

Market Trends and Retirement Strategies

NEW YORK — With the stock market performing well lately, it’s only natural to want to safeguard your retirement savings. Historically, though, the best approach has often been to stay calm and not react hastily.

The U.S. stock market has a strong history of bouncing back from various downturns. Whether it’s a major financial crisis or geopolitical tensions, the S&P 500 has eventually recovered and forged new highs. Yes, that recovery can take time, but those who prematurely shift their 401(k) investment away from stocks may miss out on potential gains.

Will the market rebound again? Honestly, no one can say for sure. However, this time things might look a bit different. Yet many seasoned investors still offer the same advice: if you don’t need immediate access to cash, it’s wise to stay in the market. It can be tough, though.

This guidance was echoed after the global tariffs introduced under President Trump and during the pandemic’s economic impact in 2020. Coping with these turbulent times is part and parcel of the greater long-term returns stocks can offer.

“Volatility can feel unsettling, and it may increase from here,” said Anthony Saglimbene, chief market strategist at Ameriprise. “But volatility is typically short-lived at extreme levels, and such chapters can often give investors a favorable entry point to buy rather than sell.”

Concerns Surrounding Conflict

Ongoing conflicts, such as the war in Iran, are disrupting global oil supply and contributing to severe market fluctuations.

The situation has stalled traffic in major cities, and one-fifth of the world’s oil usually flows through the Strait of Hormuz. With storage capacities reaching their limits, oil producers are announcing cuts in production.

Oil prices surged to nearly $120 a barrel recently, marking the highest levels since the summer of 2022, fueled by worries of ongoing production issues. Some analysts suggest that prices could skyrocket to $150 if the Strait remains blocked.

If high oil prices persist, the global economy could face a tough scenario known as “stagflation,” where inflation remains elevated despite stagnant growth—an unfortunate combination that central banks struggle to mitigate.

Market Fluctuations

As of Thursday, the S&P 500 was only 4.4% shy of its all-time high from January. The recent mood is somewhat dampened by notable volatility, with stock prices fluctuating dramatically both daily and hourly.

Since the onset of the Iran conflict, the Dow Jones has experienced significant intraday plunges of about 900 points, only to recover by the end of the trading day.

Typical Market Behavior

While the stock market doesn’t always fluctuate like this, it does have a documented history of experiencing deep losses followed by recoveries.

The S&P 500 has a pattern of at least a 10% decline annually, which investors refer to as “corrections.” Such downturns are often seen as a necessary adjustment that prevents excessive optimism from inflating stock prices too high.

Contemplating Sales

Moving investments from stocks to bonds might lower the risk of major losses. However, pulling out of the market also means you’ll need to choose the right moment to jump back in if you want to capitalize on future gains.

Timing the market is notoriously tricky. Some of the most significant gains in stock history occurred during downturns.

Though recoveries can vary in length, experts suggest avoiding investments in stock funds that you’re unwilling to keep for at least several years. Emergency funds for urgent needs should not be tied up in the stock market.

Younger Investors’ Opportunities

With trading apps making it easier than ever, a new wave of young investors is entering the market. Many of them may not be accustomed to the current volatility.

On a brighter note, younger investors have time on their side. With decades until retirement, they can afford to weather market fluctuations and potentially see their portfolios recover thanks to compounding. For them, dips in prices can feel like opportunities.

Older Investors’ Challenges

Conversely, older investors have less time to make up for losses.

If already retired, it may be wise to reduce spending and withdrawals following a market downturn. Larger withdrawals can further diminish the potential for future growth. Still, some individuals may need to keep investing for decades, even during retirement.

For Those Needing Immediate Access

Sometimes, the need to access 401(k) funds can’t be avoided. However, selling stocks and withdrawing cash can carry tax implications and penalties. Additionally, withdrawing funds means those investments lose the chance for recovery and future growth.

Though 401(k) loans are an option in certain cases, they come with their own set of rules and may involve penalties.

Pension Holders

For those with defined benefit pensions, market fluctuations have less direct impact since they receive fixed benefits regardless of stock market performance.

Current Market Dynamics

Typically, when stock prices decline, bond and gold prices increase as investors flock to safer options. This is why many advisors recommend a diversified portfolio to absorb market shocks.

However, in this instance, U.S. bond prices have fallen due to inflation and oil price concerns. Rising bond yields can occasionally lead to a decrease in gold prices, making gold less appealing as it doesn’t yield interest for investors.