Investing During Uncertainty: What to Do When You're Feeling Nervous

These days, when I meet up with friends or introduce myself as a financial advisor to new people, like clockwork, everyone says the same thing: “Pretty crazy what’s happening in the stock market, huh?” I usually feel compelled to respond with humor and say, “Why? Is something going on?” My response is usually followed by the other person asking, “So what should I be doing with my money?” It’s a fair question.

Headlines have been dominated by economic uncertainty. Market volatility, talk of tariffs, and renewed fears of a recession have many people feeling anxious, leaving them wondering what, if anything, they should be doing with their finances right now.

From time to time, we provide quotes to news outlets for publication, and we constantly receive inquiries from reporters asking us to comment on economic conditions or personal finance. Under current market conditions, there has been a noticeable uptick in the number of outreaches we have received. The recent outreaches have been some varying degrees of the following:

“I’m working on a story about the tariff news and what people should do right now. I’m looking for actionable items people can take, not ‘don’t panic, focus on the long-term.’ Should people buy a car or dishwasher now to get ahead of tariffs?”

What should people do right now? The question implies that there is a right or wrong answer and an immediacy to it – if you do not act now, it will be too late.

When markets get scary, it’s completely natural for your brain to say, “Don’t just stand there! Do something!” And if you do not have a part of your brain saying that, you can turn on your television to any news station, and there will probably be a talking head screaming that same message at you. It is normal to be scared. It is normal to want to make a dramatic change to curb your anxiety.

Behavioral finance – basically the psychology of money – gained significant popularity in the late 70s and early 80s, and it was around that time that a sense of complacency began to develop in the finance industry. People in the industry would disregard the feelings of those who would get scared when the market goes down. And the script started to develop, “Don’t sell now! It’s ridiculous to sell now! You’ll regret it if you do!” The result was that people started believing that their feelings were underappreciated and misunderstood.

But when the market is moving a lot, it is normal to feel nervous or scared. It is entirely rational to have those feelings – the news is scary.

We are hard-wired to want more of the stuff that gives us security or pleasure and to run away as fast as we possibly can from the stuff that causes us panic, uncertainty, or danger.

Using MRI scanners, neuroscientists have made two observations. First, they found that financial losses – and even the expectation of losses – set off the primal part of the brain that braces you for a fight or flight response. Secondly, research has also shown that a series of financial losses activates the part of the brain that helps program our memories of fear and anxiety. Knowing that, of course, you might feel scared or nervous when markets are down. It is not only valid; it is in your biology!

Long ago, there was no real harm in confusing false alarms with real ones. If that primal part of your brain sent you ducking for cover to protect you from a predator, you were safe – regardless of whether the danger was real or not.

But in investing, a panicked response to a false alarm – abandoning a well-constructed investment plan and dumping all of your stocks during a downturn – can be costly. Not only can it disrupt your long-term investing strategy, but it could also cause you to run from the market at a down point and miss out when the market bounces back. Activation of that primal part of your brain can trigger an adrenaline rush, which can 'fuse' memories together. This reinforces negative patterns, makes them harder to unlearn, and can lead you off course from your long-term plans.

So, when markets get scary, it is beneficial to avoid chasing predictions or listening to the talking heads on news networks who claim to know precisely how things will turn out. That approach never works. Instead, we find it helpful to think in terms of frameworks – how am I thinking about this? Having a framework for uncertainty can give us clarity when everything else feels chaotic.

The first framework is to acknowledge the fear. When the world feels uncertain, it is normal to feel anxious. You are not alone if part of you wants to take immediate, dramatic action. Recognizing that response is the first step toward responding thoughtfully instead of reactively.

The second framework is simplification – how can I make my life simpler? This might mean consolidating accounts, pausing a significant financial decision, or stepping back from complex strategies. Think of it like moving to higher ground before a storm hits. Simplicity creates clarity. It reduces complexity at exactly the time when your brain is least equipped to handle complex decisions.

The third framework is to focus on what you can control. Trying to predict what markets will do next is a losing game. Instead of chasing certainty in areas that are inherently unknowable, focus on what is actually within your control. You cannot control the markets, but you can control your actions. That’s where real financial resilience comes from.

So, what actionable steps can you take?

There are a few practical things you can do right now that don’t require drastic changes but can still move the needle:

• Avoid New Commitments: Can you pause major purchases or delay new financial commitments until things feel more stable?

• Look for Small Savings Opportunities: This is not about skipping your morning coffee; it is about trimming around the edges – delaying a non-essential expense, cutting back on entertainment, or pushing a purchase out by a few months. These small choices can create meaningful breathing room.

• Review Your Subscriptions: This one is surprisingly satisfying. Review the recurring subscriptions in your life – do you really need all of them? Those subscriptions add up, and more importantly, it feels empowering to clean things up.

• Replace ‘No’ with a Bigger ‘Yes’: Instead of thinking of this as a season of cutting back, try reframing it. What are you saying ‘yes’ to? Maybe it’s more quality time with your family, getting outside for a walk, or finally tackling that project you’ve been putting off. It is not just about saving money – it is about finding value in new places.

There is a great deal we cannot control right now – but there is also much we can. These small steps are not dramatic, and that is the point. Financial resilience is not about predicting the future. It is about building a life that is flexible and able to adapt to whatever comes next.

By simplifying where you can, delaying what can wait, and making space for the things that matter, you are creating a buffer; you are creating room to breathe. And that is what true financial resilience looks like.

If you would like to learn more about how to create a personalized strategy that aligns with your goals, check us out! You can schedule a complimentary, no-obligation call with us here.

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About the Author

Holzberg Wealth Management is a family-owned and operated financial planning and investment management firm based in Marin County, CA. As your financial advisors, we serve you as a fiduciary and are fee-only, so we never receive commissions of any kind. We help individuals and families like you in the greater San Francisco Bay Area and nationwide with the financial decision-making process to organize, grow, and protect your assets.

** This writing is for informational purposes only. The author and Holzberg Wealth Management do not guarantee or otherwise promise any results that may be obtained from using this report. No reader should make any investment decision without first consulting their financial advisor and conducting their own research and due diligence. These commentaries, analyses, opinions, and recommendations represent the personal and subjective views of the author and do not constitute a recommendation, offer, or solicitation to make any securities transaction. The information provided in this report is obtained from sources that the author believes to be reliable. External links to third parties are being provided for informational purposes only. Holzberg Wealth Management is not affiliated with the third-party websites linked to, unless otherwise explicitly stated, and does not constitute an endorsement or approval by Holzberg Wealth Management of any of the third party’s products, services, or opinions.