Raise your hand if you’ve had the temptation to tweak your portfolio in response to recent news headlines, economic data, or short-term market noise. You’re not alone. Many Boston investors felt compelled to make quick moves or time the securities markets when the volatility made them nervous. 

Timing the markets might sound appealing to boost your returns; buy low, sell high, and cash in on significant market swings. But in reality, it’s a risky and often unreliable strategy. Even professional fund managers, with years of experience and sophisticated tool sets, regularly struggle to predict precisely when the market will rise or fall.

In today’s blog post, we’ll explore why sticking to your plan often beats trying to time markets and how working with a Boston financial advisor can help you stay focused on what matters—achieving your long-term goals.

Even the Pros Have Trouble Accurately Timing the Market

It’s easy to think that with all the data and technology at their disposal, top fund managers might have a knack for predicting market tops and bottoms. However, research shows that even the best active fund managers struggle to consistently buy when prices are low and sell when prices are high. Some professional managers will admit that getting timing right, even once, can be nearly impossible.

When you look at professionally managed portfolios, most have underperformed their benchmarks over the past 10 years or more. That’s not because they lack knowledge, but because the market’s twists and turns are quick and unpredictable. 

Markets move in short bursts, making them even less predictable. This is where the power of partnering with a Boston financial planner can make a difference in pursuing your long-term financial goals. They can assist you in creating a retirement plan that is committed to achieving long-term goals by focusing on a strategy built to weather all types of economic conditions, rather than trying to predict the performance of individual securities.

Why the Best Days Often Come During the Worst Bear Markets

Market timing isn’t just hard, it’s also risky. Some of the best days in stock market history have happened during turbulent times. 

For example, in early April 2025, the Trump administration announced sweeping tariffs that sparked intense market volatility, driving the S&P 500 into a bear market with a 20% drop from its February peak. Fears of inflation, reduced corporate earnings, and a potential U.S. recession fueled the sell-off. 

However, a 90-day tariff pause on April 9 (excluding China) triggered a massive relief rally. The S&P 500 surged 9.5%, one of its largest single-day gains since WWII, as investors regained confidence in the direction of our economy. 

This pattern isn’t unique. Missing just the ten best days in the past 20 years can reduce long-term growth by half. Over decades, data shows that missing just a few of the market’s best days can dramatically reduce your long-term returns. No one knows when those days will happen, so consistent investing in quality companies is the better choice.

Our team of Boston financial advisors at Sherr Financial Associates (SFA) suggests that the best days often sneak up when headlines are grim and uncertainty is high.

A Consistent Plan Beats Emotional Reactions

At Sherr Financial (SFA), we work with clients who want to grow and preserve their assets through good times and bad. One of our most important lessons is that investing isn’t about making big bets or reacting to the latest headline. It’s about crafting a plan based on pursuing and sticking with your long-term goals.

A goals-based financial plan helps you see the bigger picture. Whether you’re focused on retirement planning in Boston, paying for your kids’ education, or managing your income streams during retirement, a steady approach matters far more than trying to predict every market move “in advance”.

Of course, feeling nervous when the market takes a steep drop is natural. No one likes to see their assets decline in value. But history shows markets go up and down, and those who stay invested and keep contributing to their savings accounts, rather than pulling money out, are more likely to come out ahead in the long run. Remember that down markets also create buying opportunities for more disciplined investors.

Boston Retirement Planning Tips

Here are ten retirement planning tips to keep in mind when the markets get bumpy:

1. Stay invested – Trying to time the market can mean missing out on days or weeks that drive long-term returns. A steady investment approach often works better.
2. Diversify your portfolio – Spreading your investments across different asset classes (stocks, bonds, cash equivalents, real estate) can help reduce risk and smooth market swings.
3. Rebalance regularly – Adjusting your mix of stocks, bonds, and other investments keeps your portfolio aligned with your risk tolerance and goals.
4. Focus on your long-term goals – Keep your retirement objectives front and center. Short-term volatility is part of the process.
5. Keep cash reserves – Having a cash buffer can help you weather market dips without selling investments at a loss.
6. Avoid panic selling – Emotional reactions during downturns can lock in losses and damage your future growth potential.
7. Review your withdrawal strategy.– If you’re in retirement, consider how and when you withdraw from your investments to make your plan more sustainable later in life.
8. Consider Roth conversions – During market downturns, converting traditional retirement assets to a Roth IRA may offer long-term tax benefits.
9. Stay flexible – While your plan should be consistent, it also needs room to adjust if your life circumstances change.
10. Talk to a financial advisor – Professional guidance can help you sort through the noise and keep your plan on track, especially when market headlines create emotional responses.

The Bottom Line: Consider Working with a Boston Fiduciary Asset Manager

Market noise will always be there, but you don’t have to let it dictate your future.

At SFA, we help investors focus on what they can control: setting goals, managing risk, making quality investments, and staying consistent.

If you’re looking for financial advisors in Boston who can help you answer these questions and build a plan that reflects your situation, contact the experienced team at Sherr Financial Associates (SFA). 

Market noise will always be there, but you don’t have to let it dictate your future.