Diversity is always a good idea when it comes to investing. Putting your money in a mix of different assets and industries is one way that can help to limit volatility in your portfolio. For example, historically, in a good economy, stocks often outperform bonds. However, bonds have typically been a better bet when the market drops. Investing in both can lessen the likelihood that your finances will take a big hit.

A market downturn is an opportunity to buy stocks at cheaper prices. Cheaper prices also mean you can buy a larger number of shares.²  So, if you’re setting long-term goals—like starting a family or paying off debt—investing when the market is at a low point can give you an advantage.

One of the most important pieces of advice for new investors is to not act on impulse or emotion. It makes sense to be concerned with daily losses and to consider getting out of the market. But remember, when you invest over the course of a lifetime, down periods will come and go. Don’t get spooked and start selling. Recognize that bear markets (when the market falls 20% or more from the peak) historically last for a shorter time than bull markets (when stocks go back up by 20% or more after a decline).³ Depending on your situation, you may want to sit tight and wait out the turbulence. Ultimately, playing the long game can set you up for success and help keep you focused on achieving your big financial goals.