Staying Calm Amid Market Volatility Often Pays Off for Investors

Experts advise patience as stocks recover from shocks like the Iran war's impact on oil prices

Published on Mar. 12, 2026

Got story updates? Submit your updates here. ›

When stock markets are volatile, it's natural to want to protect retirement savings, but historically, staying calm has usually been the best approach. The U.S. stock market has a track record of recovering from steep drops, though the recovery can take years. Experts recommend not moving 401(k) investments out of stocks, as that risks missing out on the recovery and further gains. While the current situation with the war in Iran and its impact on oil prices is different, the advice remains the same: as long as the money isn't needed soon, try to be patient and ride out the market's swings.

Why it matters

Volatility in the stock market can be unsettling, but history shows that staying invested through the ups and downs typically pays off in the long run. This is especially important advice for younger investors with decades until retirement, as well as retirees who need their investments to last 30 years or more.

The details

The war in Iran has disrupted global oil supply, causing prices to spike and raising fears of 'stagflation' - stagnant growth combined with high inflation. This has led to extreme swings in the stock market, with the S&P 500 plunging and recovering within the same day on several occasions. However, the index remains just 4% below its all-time high set in January. Experts say such sharp drops, known as 'corrections,' are common and often represent a culling of market optimism.

  • On Monday, oil prices briefly spiked to nearly $120 per barrel, the highest since summer 2022.
  • The S&P 500 is just 4% below its all-time high set in January 2026.

The players

Anthony Saglimbene

Chief market strategist at Ameriprise.

Got photos? Submit your photos here. ›

What they’re saying

“Although volatility may feel uncomfortable, could rise from here, and possibly cause a near-term drawdown in stocks, volatility in itself tends to be brief when it reaches more extreme levels. And, more often than not, the extreme volatility provides investors with a solid long-term entry point to buy stocks rather than sell.”

— Anthony Saglimbene, Chief market strategist (Ameriprise)

What’s next

No clear next steps are mentioned in the article.

The takeaway

This case highlights the importance of staying patient and invested during periods of market volatility, as stocks have historically recovered from even the sharpest declines. For younger investors, market dips can represent buying opportunities, while retirees may need to adjust spending to weather the storm.