In recent weeks, I’ve received more questions than usual about “the market” being in a sell-off. Fueled by media headlines, many investors are led to believe that the stock market is on a general decline. But just like the absurd, often irrelevant plot twists in Seinfeld, the media’s portrayal of “the market” rarely tells the whole story. Much like a Seinfeld episode, the financial media serves up a lot of noise, but how much of it really matters? Let’s dig in and separate the sitcom-worthy drama from the investment reality.
“Yada Yada Yada”
When the financial media reports on “the market,” they almost always focus on the major U.S. indices—the S&P 500, Dow Jones Industrial Average, and Nasdaq. These indices are currently down about 5% year-to-date, which is enough to spark concern in the minds of many investors.
But here’s the catch: the “yada yada yada” leaves out important details. While the headlines obsess over a few indices, other parts of the market are performing quite well. For example, developed international stocks, measured by the MSCI EAFE index, are up so far this year. Similarly, investment-grade fixed income—a core component of many diversified portfolios—has remained stable, offering some protection against equity volatility.
The point is that “the market” is not just about the movement of a few large-cap U.S. stocks. Diversification works, and your portfolio may be experiencing positive returns even when the major U.S. indices are down. Don’t let the media’s simplified narrative cause unnecessary alarm.
“Not That There’s Anything Wrong with That”
Let’s face it: volatility is unsettling. It’s perfectly natural for investors to feel anxious when they see their portfolios dip. “Not that there’s anything wrong with that” means that there’s no shame in being human and experiencing feelings. And it’s the same with market volatility—there’s no shame in feeling nervous when your investments take a downturn. These emotions are real…and they’re spectacularly misleading.
The key is to understand that this emotional response is part of the process. In fact, the fear you might be feeling is exactly why it’s so important to build a diversified portfolio and stick to a long-term strategy. Markets will have ups and downs, and those fluctuations are natural and normal.
Just as Seinfeld showed us that there’s nothing wrong with embracing the absurdity of life, there’s nothing wrong with feeling uneasy in times of market volatility. What matters is how you respond. A thoughtful, disciplined approach to investing will often prove to be the best course of action in times like these.
“You’re Still the Master of Your Domain”
In Seinfeld’s famous episode “The Contest,” Jerry, George, Elaine, and Kramer make a bet to see who can resist temptation the longest. They refer to the challenge as being the “Master of Your Domain.” The winner? The one who does absolutely nothing.
This is a perfect analogy for investing. When markets get volatile, the temptation to do something—sell, buy, move to cash—is overwhelming. But just like in Seinfeld, the real winner is often the one who resists the urge and stays the course.
Research backs this up. The DALBAR study , which tracks investor behavior, consistently shows that the average investor underperforms the broader market (and their own portfolios!) due to emotional decision-making. Investors who panic and sell during downturns often miss the best recovery days, while those who try to time the market often get it wrong.
The lesson? Being the master of your portfolio means resisting the constant urge to react emotionally. The best investors recognize that not acting—sticking to a plan, staying diversified, and ignoring short-term noise—often leads to better results than frequent trading. Just like in Seinfeld, the challenge is in not giving in to temptation.
“Serenity Now!”
If you’re feeling stressed about recent market declines, it helps to step back and remember that we’ve just experienced a period of tremendous growth. Large-cap U.S. stocks, particularly those in technology, have far exceeded their historical average returns in recent years. Given such strong performance, some level of market correction or volatility is entirely expected.
This is where the “Serenity Now!” mantra comes in. In moments of anxiety, it’s crucial to adopt a calm, long-term view. While the current decline might seem significant in the moment, it’s important to put it in perspective. The strong returns we’ve seen over the past decade didn’t disappear overnight, and this market decline doesn’t negate the years of growth that preceded it.
Remember, markets fluctuate—this is a natural part of investing. By staying diversified, sticking to your long-term goals, and not reacting impulsively to short-term events, you’ll weather these ups and downs far more effectively. The market has its cycles, and maintaining your calm will help you navigate them more successfully.
So, the next time the financial media declares a “market sell-off,” remember it’s not the whole picture. Stay focused on your diversified portfolio, keep your long-term perspective, and recognize that volatility is just part of the investment journey. Like Seinfeld, which was “a show about nothing,” the short-term movements in the market often turn out to be much ado about very little.
And when in doubt, take a deep breath. Market headlines can be noisy, but staying focused on your long-term strategy is what truly matters. If you’d like to discuss your investments or have any questions, feel free to reach out—we’re always happy to help. When the media goes “yada, yada, yada”, ask yourself if you are still the master of your domain. It’s about finding calm amidst the noise.
Serenity Now,
Frank Hujsa, CFP®, CLU®, CEPA®
Partner, Acadium Financial Partners
Financial Adviser, RJFS
C 239.207.4392
27499 Riverview Center Boulevard, Suite 108
Bonita Springs, FL 34134
Frank.hujsa@acadiumfinancial.com
www.acadiumfinancial.com
Any opinions are those of Frank Hujsa and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. member FINRA/SIPC. Acadium Financial Partners is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc.
Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results. The information provided has been prepared from sources believed to be reliable but is not guaranteed by Raymond James Financial Services and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.
I https://www.dalbar.com/Portals/dalbar/Cache/News/PressReleases/QAIB2024_PR.pdf