In this episode of the FMI Podcast, financial planners Marlana Lancaster and David Elmore discuss the fundamental principles of navigating market volatility. They address why market fluctuations are a normal, expected part of the investment cycle and explain the technical definition of a "correction". The conversation focuses on the importance of maintaining a long-term perspective, even when headlines or geopolitical events cause short-term uncertainty. The hosts share practical strategies for investors to manage their emotions, including the psychological benefits of limiting news consumption and the dangers of attempting to "time" the market. David also highlights the advantages of active management, explaining how downturns can provide opportunities to buy quality companies at under valued prices to help propel future portfolio growth.
00:00 – Introduction & current market context
00:27 – Geopolitical events (Iran conflict) and market impact
01:05 – Why market declines like this are normal
02:06 – What is a market correction?
02:42 – Why downturns feel worse than they are
03:08 – How advisors guide clients during volatility
03:29 – Turning off the news & emotional investing
03:59 – What a stock actually represents (ownership explained)
05:03 – Long-term strength of companies vs short-term noise
05:22 – Examples of real companies behind the market
06:21 – Role of government policy vs business fundamentals
07:11 – Should you get out of the market?
07:24 – Why timing the market doesn’t work
08:17 – Staying invested & active management strategy
08:44 – Buying opportunities during downturns (“on sale”)
09:04 – Dollar-cost averaging during volatility
09:24 – Limiting news consumption
09:42 – How often to check your portfolio
10:46 – Active management example (oil, Exxon, profits)
12:03 – The “brick through the window” analogy
13:09 – Recap: why you can’t time the market
13:43 – Missing recovery days and impact on returns
14:06 – Final thoughts & closing
