December 22, 2025

Positioning for 2026: Turning 2025’s Volatility into Your Advantage

Every volatile year puts both your investments and your emotions to the test—and 2025 was no exception. How the markets behaved, and how you responded, reveal a lot about how to set yourself up for success in 2026. By using what you learned about your goals and your true comfort with risk, you can create a strategy that works for you in the real world, not just on paper.

Start with your numbers.

Start by looking at how your 2025 portfolio performed compared to your long-term plan, instead of just focusing on news or market indexes. Did your mix of stocks, bonds, and other investments act the way you expected based on your comfort with risk, or did any losses feel bigger and more abrupt than you thought they would?

When markets are turbulent, your portfolio can drift away from your planned balance because some investments swing more than others. That’s why many advisors suggest checking in and rebalancing now and then, so your risk stays in line with your goals. Looking at your performance and allocations before 2026 will help you see if you’re still on track—or if it’s time for a tune-up to keep things balanced.

Study your own behavior.

Big market swings often reveal the gap between the risk you think you can handle and what actually feels okay in the moment. Think back to 2025: When did you feel the most uneasy? Was there a news headline, a dip in your account value, or a sudden change in your portfolio that made you anxious or tempted you to make a move?

Research shows that selling in a panic during downturns—or chasing hot investments after rallies—often means missing out on recoveries and hurting your long-term results. If you felt tempted to ditch your plan during 2025’s wild swings, it could be a sign that your current investments are riskier than you’re truly comfortable with when things get rough.

Right-size your risk for 2026

If you found yourself feeling stressed or uneasy a lot, think about adjusting your risk level a bit now—before the next wave of volatility forces you into bigger, emotional decisions. A slightly more conservative approach might mean smaller potential gains, but it can also help you stick with your plan and avoid making moves you’ll regret later.

On the flip side, if you remained calm, stayed invested, and stayed on track toward your goals, that’s a good sign your current risk level is a fit for you—or maybe you could even handle a bit more growth, if it suits your timeline and goals. But any changes should always come after a careful review of what you need, your time frame, and how much loss you can truly handle.

Turn lessons into action.

The key is to turn what you learned in 2025 into real changes: maybe that’s updating your target mix, tweaking how often you rebalance, or putting in a bit more money if your plan needs it. You could also set up regular check-ins or plan for how you’ll communicate during market ups and downs—so you’ll have a game plan before the next rough patch hits.

When you see market ups and downs as useful information instead of just background noise, you can head into 2026 with a portfolio and plan that really match who you are as an investor. That kind of fit between your strategy and your natural reactions can make all the difference in turning market swings into opportunities instead of setbacks on your path to long-term goals.

Disclosure: This material is for informational and educational purposes only and is not intended as investment, tax, or legal advice. It does not take into account the specific objectives, financial situation, or needs of any particular person. All investments involve risk, including the possible loss of principal. Past performance is not a guarantee of future results, and no investment strategy can ensure a profit or protect against loss in periods of declining values. Consider consulting a qualified financial professional before making any investment decisions.

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Positioning for 2026: Turning 2025’s Volatility into Your Advantage

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