High Market Volatility? These Are the Steps Investors Need to Take

JAKARTA — Stock market turbulence often triggers investor anxiety, particularly during sharp corrections or potential crises. However, a financial planning-based approach is considered key to maintaining portfolio stability and ensuring long-term objectives are met. In its analysis, quoted on Tuesday (14/4/2026), Morgan Stanley stresses that market volatility is an inseparable part of the investment cycle. “Market volatility is a normal characteristic of the market that you must anticipate,” writes Morgan Stanley. In this context, emotional reactions such as panic selling or offloading assets when prices drop are viewed as one of the most common mistakes that can harm investors in the long term. Morgan Stanley highlights the importance of discipline in adhering to a previously formulated financial plan. Efforts to “time the market” or engage in market timing are described as a high-risk approach. In many cases, investors risk missing out on recovery opportunities by exiting the market too quickly. “Trying to predict the timing of market downturns is extremely difficult and can cause you to miss out on potential gains,” states Morgan Stanley. A study of nearly 120,000 investors shows that the majority of those with a financial plan remain on track, even when the market hits its lowest points. More than three-quarters of investors who were previously “on track” to meet their financial goals stayed in that position when the market reached its lowest, despite a portfolio decline of around 16 percent. Overall, their likelihood of achieving financial goals only fell by about 2 percent at the peak of the crisis.