When Markets Stutter, Your Plan Shouldn’t
You’ve seen the headlines. GDP growth slowing. Unemployment ticking up. Consumer confidence wavering. Suddenly, everything feels uncertain.
Welcome to what some economists call a “stuttering economy” — that awkward phase where growth isn’t collapsing but it’s not exactly thriving either. The car’s still running, just coughing a bit.
And if you’re sitting on a retirement nest egg you spent decades building? That cough can sound like a roar.
I get it. You check your portfolio balance more often. You wonder if you should “do something.” Your neighbor mentions moving everything to cash. A financial pundit on TV says the sky is falling. Another says we’re fine.
The noise can be deafening.
The Problem: Headline Panic vs. Personal Reality
Here’s what can make a wobbly economy so unsettling: it exists in this gray zone. It’s not a clear crisis with obvious actions. It’s not a bull market where you can relax. It’s this nagging uncertainty that can make you question every decision.
Should I delay retirement? Sell stocks? Hoard cash under my mattress?
The financial media doesn’t help. Their job is to capture attention, not calm your nerves. So they amplify every tremor. Every data point becomes a potential catastrophe or miraculous recovery.
But your financial plan isn’t built for headlines. It’s built for your life.
And that life doesn’t pause just because the economy is catching its breath.
What a Stuttering Economy Actually Means
Let’s ground this in reality.
A stuttering economy typically means sluggish growth, rising caution among businesses, and markets that can’t decide which direction to go. A stuttering economy typically means sluggish growth, rising caution among businesses, and markets that can’t decide which direction to go. Think of periods like the mid-2010s when growth concerns emerged, or pre-pandemic 2019 when trade tensions created uncertainty.
These periods happen. They’re normal. And they can last months or even a couple years.
What they’re not: a guaranteed recession. What they are: a reminder that economies don’t typically grow in straight lines.
The bigger question isn’t “Is the economy wobbly?” It’s “Does my financial plan account for wobbles?”
Because if you’ve been investing for decades, you’ve already lived through several of these. You might not have noticed them all. That’s actually a good sign — it means your plan was sturdy enough to absorb the bumps.
Don’t Let the Market Drive the Car
When things feel uncertain, your brain will push you toward action. Any action. It wants control.
So some people sell stocks. They stop contributing to retirement accounts. They stuff cash in a savings account earning less than inflation eats.
These moves feel safe in the moment. But they can often lock in losses or create new problems.
Here’s the truth: knee-jerk reactions rarely improve long-term outcomes. Usually, they just add regret to the mix.
I’ve seen clients panic-sell during every market wobble over the past two decades. And I’ve yet to meet one who said, “I’m so glad I sold everything in 2015.” What they do say: “I wish I’d stayed the course.”
Markets reward patience more often than they reward panic.
What You Should Consider Doing Instead
Let’s talk about the moves that can actually matter when the economy stutters.
Rebalance Your Portfolio
If stocks have fallen, your portfolio might now be heavier in bonds or cash than you intended. Or vice versa. Rebalancing means bringing things back to your target allocation.
This isn’t about timing the market. It’s about maintaining the level of risk you originally designed for your situation.
Think of it like adjusting your car’s alignment. You’re not changing the destination. You’re just making sure you stay on course.
Check Your Cash Reserves
Do you have 6-12 months of living expenses set aside in a liquid, accessible account? If not, this is the time to consider building that buffer.
Cash reserves can give you options. They let you avoid selling investments at the worst possible moment. They might let you sleep better when headlines scream.
This isn’t “market timing.” It’s basic preparedness.
Stay Invested in Your Long-Term Plan
If you’re still years away from retirement, short-term volatility is noise. Your portfolio has time to recover from dips.
If you’re closer to retirement or already there, you should have structured your portfolio to account for this. That may mean holding enough stable assets to cover near-term spending without being forced to sell stocks in a downturn.
The point: you’re not riding out the storm in a rowboat. You’re in a ship with ballast.
Avoid the Temptation to Go All-Cash
Cash feels safe. But it’s not risk-free. Inflation erodes purchasing power. And when markets eventually recover — and they do — you’ll miss the rebound.
The investors who fare best aren’t the ones who avoid every dip. They’re the ones who stay disciplined through the dips.
Think Like a Homeowner in a Storm
Imagine you live in a well-built house. A storm rolls in. The wind howls. Rain pounds the roof.
Do you panic and tear off the shingles? Do you run outside and start rearranging the foundation?
No. You stay inside. You trust the structure. You wait.
Your financial plan is like that house. If it was built right — with diversification, proper asset allocation, and a realistic timeline — it’s designed to hold through storms.
The worst thing you can do is start dismantling it mid-storm.
Why I Care About This
As a financial advisor, it’s my mission to build client relationships that go beyond investment returns. I’m committed to putting my clients first by building trust and to help provide value from day one.
It’s not just an investment in securities. It begins with an investment in trust.
When the economy wobbles, that trust gets tested. Clients call. They may be anxious. They might want reassurance. They want a plan that makes sense even when nothing else does.
And honestly? That’s when I feel most useful. Not during the easy times, but during the uncertain ones.
At Measured Financial, we aim to broaden your investment opportunities through strategies not dependent on the whims of the stock market alone. You’re treated with a personal touch. We strive for you to feel valued, heard, and understood every time we interact with you.
We take your trust seriously. That’s why we’re straightforward, honest, and open in our communication with you.
What Happens Next
If you’re reading this and thinking, “I’m not sure my plan can handle this,” that’s a signal worth listening to.
Not a signal to panic. A signal to review.
Maybe your asset allocation needs tweaking. Maybe your cash reserves could be stronger. Maybe you just need someone to walk through your plan with you and confirm you’re on solid ground.
Whatever it is, you don’t have to figure it out alone.
Visit measuredfinancial.com/contact-page-alex-gibbs and fill out the contact form. A human will call you to schedule a conversation with me. No sales pitch. Just a discussion about where you are and what makes sense for your situation.
Because when the economy feels wobbly, the right plan doesn’t.
Advisory services are offered through Tailored Wealth Management, LLC dba Measured Financial, an Investment Advisor in the State of California..
All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.
