Young Investors Grapple with Market Volatility

Financial advisors offer tips for Gen Z to navigate turbulent markets

Apr. 14, 2026 at 6:22pm

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An extreme close-up of a complex network of gears, levers, and dials in a muted industrial color palette, conveying the intricate and intimidating nature of modern finance.As market volatility tests the resolve of young investors, the inner workings of the financial system remain a formidable challenge to navigate.Brooklyn Today

The recent market volatility amid the U.S. war with Iran has been especially unsettling for young investors, many of whom are experiencing their first major downturn. Financial advisors warn that these early experiences can weigh heavily on how Gen Z views the markets, and offer guidance on how young investors can adapt their strategies to weather the ups and downs.

Why it matters

As more young people start investing at earlier ages, their first encounters with market volatility can shape their long-term perspectives and risk tolerance. Helping Gen Z investors develop the right mindset and investment approach during these formative years is crucial for their future financial success.

The details

Since the war in the Middle East began on Feb. 28, the S&P 500 has seen daily drops of more than 1.7% and daily gains higher than 2.5%. Within the first month, the index shed more than 7%, causing a $10,000 investment to drop to around $9,260. However, the S&P 500 has since recovered those losses. Financial advisors warn that these swings may have an outsized impact on new, young investors who lack experience living through prior market downturns and recoveries.

  • The U.S. war with Iran began on February 28, 2026.
  • Within the first month of the war, the S&P 500 shed more than 7%.
  • The U.S. announced a two-week ceasefire on April 7, 2026.
  • As of Monday's close, the S&P 500 investment had recovered to $10,026.

The players

Douglas Boneparth

President and founder of Bone Fide Wealth, a wealth management firm in New York City.

Zach Teutsch

Founder and managing partner at Values Added Financial, a wealth management firm in Washington, D.C., and a member of CNBC's Financial Advisor Council.

Cristina Guglielmetti

A CFP and the president of Future Perfect Planning, a wealth management firm in Brooklyn, New York.

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What they’re saying

“An early decline can make the market feel unusually dangerous when volatility is a normal part of long-term investing.”

— Douglas Boneparth, President and founder of Bone Fide Wealth

“Our first experiences weigh heavily on us emotionally and in how we see the world. It's hard not to overlearn our first few lessons.”

— Zach Teutsch, Founder and managing partner at Values Added Financial

“Clients sometimes ask me if the market will crash, and I tell them that it's not a question of if, but when.”

— Cristina Guglielmetti, CFP and president of Future Perfect Planning

What’s next

As the market continues to fluctuate, financial advisors recommend that young investors review their asset allocation and risk tolerance to ensure their portfolio is aligned with their long-term goals. Those with shorter-term financial objectives may need to shift some funds to more conservative investments.

The takeaway

While market volatility can be unsettling for young investors, it also presents opportunities to build resilience and discipline. By developing the right mindset and investment strategy, Gen Z can navigate these turbulent times and position themselves for long-term financial success.