--- title: Strategies for Dealing with Market Selloffs - Burney Investment Management description: Corrections happen. Bear markets happen. Knowing and expecting these things will happen is necessary prior to investing in stocks. image: https://burneyinvest.com/hubfs/Imported_Blog_Media/Sell-Offs-V4.jpg --- [Skip to content](https://burneyinvest.com/blog/strategies-for-dealing-with-market-selloffs#main-content) [![Burney Investment Management](https://burneyinvest.com/hs-fs/hubfs/theme/Burney_Invest_Color_Horizontal_%232b.png?width=300&height=110&name=Burney_Invest_Color_Horizontal_%232b.png "Burney Investment Management")](https://burneyinvest.com/) - About - [Company Overview](https://burneyinvest.com/about) - [Burney Difference](https://burneyinvest.com/the-burney-difference) - Strategies - [Size & Style Responsive](https://burneyinvest.com/strategies/size-style-responsive-ssr/) - [The Burney Master Portfolio](https://burneyinvest.com/strategies/the-burney-master-portfolio/) - [Personalized Portfolios](https://burneyinvest.com/strategies/personalized-portfolios/) - [Stock Selection](https://burneyinvest.com/strategies/stock-selection/) - [Team](https://burneyinvest.com/team) - [Resources](https://burneyinvest.com/blog) - [Get In Touch](https://burneyinvest.com/contact) 12.20.2018 # Strategies for Dealing with Market Selloffs [Andy Pratt, CFA](https://burneyinvest.com/blog/author/andy-pratt-cfa) ![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/dots_y4.svg) ##### Popular Posts [How to Read VIX and VIX Term Structure](https://burneyinvest.com/blog/how-to-read-vix-and-vix-term-spread) [What Happened in the Stock Market Yesterday?](https://burneyinvest.com/blog/what-happened-in-the-stock-market-yesterday) [Performance Matters - 7 Steps Toward More Effective Investing](https://burneyinvest.com/blog/performance-matters-7-steps-toward-more-effective-investing) ![](https://burneyinvest.com/hubfs/Imported_Blog_Media/Sell-Offs-V4.jpg) Corrections happen. Bear markets happen. Of course, no one likes seeing their investments lose value but knowing and expecting these things will happen is a necessary prior to investing in stocks. We’ve written on the topic of market selloffs routinely because market selloffs happen routinely. By now, you’ve probably seen us offer evidence that market timing doesn’t work. Everything from why the [old adage “sell in May and go away” is a bad strategy](https://burney.com/blog/sell-in-may-no-way/) to how [buy and hold beats “playing it safe”](https://fivethirtyeight.com/features/worried-about-the-stock-market-whatever-you-do-dont-sell/) to the simple fact that for market timing to work, [you have to be right *twice*](https://burney.com/blog/expectations-following-market-selloffs/)*.* We’ve shared how future return expectations are *higher* after large selloffs ([1](https://burney.com/blog/market-volatility-since-1987/)) ([2](https://burney.com/blog/expectations-following-market-selloffs/)) ([3](https://burney.com/blog/2015-market-correction-whats-next/)) and how being out of the market during one of the [top-10 trading days is disastrous for portfolio returns](https://burney.com/blog/expectations-following-market-selloffs/). We’ve shown there are always headwinds in the market and we’ve written about them through the years. Investors who sold on [US valuation concerns in 2014](https://burney.com/blog/dont-panic-over-cape/) missed out on the 36% gains occurring since. Are you still afraid of [China devaluing the Yuan in 2015](https://burney.com/blog/yuan-dollar-not-a-currency-war/)? Or of the [Fed’s end of Quantitative Easing](https://burney.com/blog/stocks-perform-well-following-rate-hikes/)? How about [2015’s collapse in oil prices and earnings recession](https://burney.com/blog/2015-market-correction-whats-next/)? The point is there is always something to worry about and there are [always headlines that capitalize on that fear](https://burney.com/blog/what-can-we-learn-from-the-headlines/). For investors with a long enough time horizon, [stocks offer higher average returns with *less* volatility](https://burney.com/blog/long-term-investing/) than asset classes considered safer in the short-term, like bonds. The challenge is [getting to that long enough time horizon](https://burney.com/blog/successful-investors-keep-the-faith/). The [Behavior Gap](https://www.nytimes.com/2014/03/03/your-money/stocks-and-bonds/the-best-investment-strategy-getting-out-of-our-own-way.html?mcubz=0) is real because long-term investing is hard. Study after study ([Dalbar](http://www.qidllc.com/wp-content/uploads/2016/02/2016-Dalbar-QAIB-Report.pdf), [Morningstar](http://beta.morningstar.com/articles/637022/mind-the-gap-2014.html), [Vanguard](https://personal.vanguard.com/pdf/s801.pdf)) show that making changes to a long-term investment plan is detrimental to returns. Yet, investors continue to make these harmful long-term decisions to (hopefully) avoid short-term pain. We’ve presented evidence on why [keeping the faith](https://burney.com/blog/successful-investors-keep-the-faith/) is essential to successful investing and advised that the only way to achieve the returns promised by stocks is to be exposed to every market panic. But we haven’t offered strategies on *how* to stay invested when times get tough. Here are a few strategies that can help: 1. **Expect Volatility:** Recency bias tells us we remember events that happened most recently better than events further back. Coming out of the extraordinarily smooth ride of 2017 and the extended bull market, it is easy to forget selloffs are common occurrences. It is helpful to remember long periods of tranquility are not the norm in investing. Bearing short-term risk is the price to pay for higher long-term returns. 2. **Avoid Frequently Checking on Your Investments:** This may sound like almost irresponsible advice but investors tend to [check on their portfolios *more*](https://www.sciencedirect.com/science/article/pii/S0167268114002145) during periods of market distress. This action can make it seem like your investments are performing worse than they actually are, especially when you consider humans feel the pain from losses more than the joy from gains. If you log into your account more than once a quarter, you are probably logging in too much. 3. **If the Market Proves Too Stressful, Consider Tweaking Your Risk Allocation Rather than Making Wholesale Changes:** We are all unique and have our own risk tolerance levels. Sometimes we don’t know an asset allocation is too risky for us until we are in the middle of market volatility. It is, however, the wrong time to make big changes when stocks are selling off and emotions are high. Consider turning down the risk dial rather than switching it off and hold out until conditions stabilize before reevaluating your overall asset allocation. This is not as good a solution as staying invested but is a lot better than whipsawing from 100% invested to 100% cash. 4. **Get a Second Opinion:** Call us and talk to your advisor. Advisors earn their value during market selloffs by being a calming influence. Before making any decisions, let’s have a conversation – we are here to listen to your concerns and to help guide you through both up and down markets. --- *The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. Burney Company does not provide legal, tax, or accounting advice, but offers it through third parties. Before making any financial decisions, clients should consult their legal and/or tax advisors.* ## Articles you may enjoy 05.01.19 #### [Sell in May and Go Away Update](https://burneyinvest.com/blog/sell-in-may-and-go-away-update) [![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/circle_right.svg)](https://burneyinvest.com/blog/sell-in-may-and-go-away-update) 02.03.16 #### [Expectations Following Market Selloffs](https://burneyinvest.com/blog/expectations-following-market-selloffs) [![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/circle_right.svg)](https://burneyinvest.com/blog/expectations-following-market-selloffs) 09.05.14 #### [August Jobs Report](https://burneyinvest.com/blog/august-jobs-report) [![](https://20453469.fs1.hubspotusercontent-na1.net/hubfs/20453469/Theme/circle_right.svg)](https://burneyinvest.com/blog/august-jobs-report) ![](https://burneyinvest.com/hubfs/theme/burney-invest-logo-white-1-1.png) - [Size & Style Responsive](https://burneyinvest.com/strategies/size-style-responsive-ssr/) - [Burney Master Portfolio](https://burneyinvest.com/strategies/the-burney-master-portfolio/) - [Personalized Portfolios](https://burneyinvest.com/strategies/personalized-portfolios/) - [Stock Selection](https://burneyinvest.com/strategies/stock-selection/) - [About](https://burneyinvest.com/about) - [Team](https://burneyinvest.com/team) - [Resources](https://burneyinvest.com/blog) - [Contact](https://burneyinvest.com/contact) **Headquarters** 1800 Alexander Bell Dr. STE 510 Reston, VA 20191 Advisory services are offered through the Burney Company, an investment advisor registered with the U.S. Securities & Exchange Commission. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. © 2026 Burney Wealth Management | [Research](https://burneyinvest.com/research) | [Privacy Statement](https://burneyinvest.com/privacy-policy) | [Terms & Conditions](https://burneyinvest.com/terms-and-conditions) | [Disclosures](https://burneyinvest.com/disclosures) | [ADV](https://44214779.fs1.hubspotusercontent-na1.net/hubfs/44214779/Burney%20Company%20ADV%20Part%202A%20IM%2026%20REV.pdf) | [Form CRS (ADV Part 3)](https://44214779.fs1.hubspotusercontent-na1.net/hubfs/44214779/Burney%20Company%20Form%20CRS_March%202026.pdf) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Andy Pratt, CFA", "url" : "https://burneyinvest.com/blog/author/andy-pratt-cfa" }, "dateModified" : "2024-04-02T23:57:47.098Z", "datePublished" : "2018-12-20T22:50:17.000Z", "headline" : "Strategies for Dealing with Market Selloffs - Burney Investment Management", "image" : [ "https://burneyinvest.com/hubfs/Imported_Blog_Media/Sell-Offs-V4.jpg" ], "mainEntityOfPage" : { "@id" : "https://burneyinvest.com/blog/strategies-for-dealing-with-market-selloffs", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://burneyinvest.com/hubfs/theme/Burney_Invest_Color_Horizontal_%232b.png" } } } ```