Diversification remains your best strategy. Here’s what to do when equities plunge.

Market pullbacks can happen for many reasons—stronger-than-expected economic data, shifts in interest rate expectations, sector sell-offs, or geopolitical tensions. Recent market volatility, driven by a combination of these factors, serves as a timely reminder that uncertainty is a normal part of investing. Rather than trying to predict every market move, investors are often better served by focusing on two principles: discipline and diversification. So when markets become volatile, what should investors do? The answer is often less about reacting to the latest headline and more about staying disciplined, maintaining diversification, and keeping sight of long-term objectives.

How Should Investors Respond to Market Volatility?

Sharp market pullbacks can feel unsettling, especially when they follow periods of strong gains. While the headlines may feel alarming, periods like these are part and parcel of the market cycle. Market corrections occur regularly,...