The Risk of Missing Out: 3 Ways to Harness Market Volatility

When markets feel like a rollercoaster, it’s natural to wonder whether you should step back and wait for things to “settle down.” But what if doing nothing is actually the bigger risk?

In volatile times, it’s easy to focus only on the fear of losing money. But there’s another kind of risk that doesn’t get talked about enough — the risk of missing out. Markets can turn quickly, and often without warning. Some of the biggest gains happen in short bursts, and if you're on the sidelines when they do, you might miss a major opportunity to grow your wealth.

So how can you stay invested while still protecting yourself from the uncertainty?

Let’s break down three practical strategies to help you make the most of market volatility — without losing sleep at night.

1. Use Hedging to Stay Invested with Less Risk

Hedging sounds complex, but at its core, it's simply about adding protection to your portfolio. Think of it as wearing a seatbelt — you still drive, but you’re protected if things get bumpy.

Certain hedging strategies allow you to stay in the market while limiting your potential downside. In return, you might give up a bit of the upside — but many investors find that a fair trade for greater peace of mind.

This can be especially valuable when markets are jittery, but you don’t want to exit completely and risk missing the rebound.

Helpful Tip: Ask your advisor if your portfolio includes any downside protection strategies. If not, it may be worth exploring.

2. Turn Volatility Into Income with Covered Calls

Another way to benefit from market swings is by using covered call strategies. In plain English, this means selling options on stocks you already own. When you do this, you collect a cash payment — kind of like earning rent on your investments.

In volatile markets, those payments (called “premiums”) can be even higher. That extra income can be reinvested or used to cushion your overall returns.

Covered calls aren’t for everyone, and they do involve trade-offs, but they can offer a way to stay active in the market while generating additional cash flow.

Helpful Tip: If you’ve never heard of this before, don’t worry — it’s not something most DIY investors use on their own. A financial professional can help you understand if this strategy fits your goals.

3. Follow the Data — Even When It Challenges Your Past Beliefs

Sometimes, the best opportunities lie in places we’ve previously avoided. One example right now: international and emerging markets.

Historically, some investors have been cautious about putting money into markets outside the U.S. — and for good reason. But when the data changes, so should our thinking. Recently, certain international and emerging markets have started showing signs of strength that are hard to ignore.

A good investment strategy isn’t about sticking rigidly to old views. It’s about staying curious, open, and data-driven.

Helpful Tip: Revisit your portfolio mix with your investment advisor or wealth manager. Are you too concentrated in one area? Diversifying globally might help you better weather volatility — and uncover growth in places you hadn’t considered.

Watch Now: The Risk of Missing Out

Bottom Line: Volatility Doesn’t Have to Be the Enemy

Market swings can feel unnerving, but they can also create opportunity — if you have a plan. Whether it’s through hedging, generating income with covered calls, or looking beyond traditional markets, there are smart ways to stay invested without taking on unnecessary risk.

The key is to stay grounded, be adaptable, and avoid making decisions based solely on fear. Markets always tell a story. Our job is to listen — and respond appropriately.

Not sure what your next move should be? It’s okay to have questions — and even better to get clarity before acting. Whether you’re managing your own investments or working with an advisor, make sure your strategy is built to adapt, not just react.

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