5 Ways to Benefit From a Volatile Stock Market

Why It Matters

By applying these volatility‑focused tactics, investors can lower acquisition costs, optimize tax outcomes, and strengthen long‑term portfolio performance despite market swings.

Key Takeaways

• Use all‑in‑one multi‑asset funds to auto‑buy dips during market downturns.
• Increase retirement contributions to capitalize on lower price entries.
• Deploy cash reserves into target allocation when markets dip.
• Conduct Roth conversions in down markets to reduce future tax liability.
• Harvest tax losses in taxable accounts to offset up to $3,000.

Summary

The Morning Filter episode tackles how investors can turn heightened market volatility into an advantage. Co‑hosts Susan Jabinski and Morningstar’s Christine Benz outline tactics for both hands‑off and more active investors, emphasizing that volatility need not be feared but can be leveraged for long‑term gains.

For passive investors, the duo recommends all‑in‑one multi‑asset or target‑date funds that automatically purchase undervalued assets, and suggests boosting retirement‑plan contributions to increase exposure without a lump‑sum market entry. More engaged investors are urged to redeploy idle cash into their strategic asset mix, monitor watch‑lists for price‑target breaches, and consider tax‑efficient moves such as Roth conversions when prices are low.

Benz highlights niche strategies like taking required minimum distributions (RMDs) in‑kind to lock in cheap positions, and using tax‑loss harvesting in taxable accounts to offset up to $3,000 of ordinary income or capital gains. She notes that Roth conversions are most beneficial post‑retirement, while in‑kind RMDs can shift future gains to lower long‑term capital‑gain rates.

Overall, the conversation underscores that disciplined, tax‑aware adjustments during downturns can improve portfolio resilience and enhance retirement outcomes, turning market turbulence into a catalyst for smarter investing.

Original Description

#investingadvice #marketvolatility #portfolioconstruction

Both hands-off and hands-on investors can turn volatility into opportunity.

5 Costly Mistakes to Avoid in Today’s Unpredictable Market https://www.morningstar.com/portfolios/5-costly-mistakes-avoid-todays-unpredictable-market

00:00:00 Introduction

00:00:30 How Delegators Can Benefit From Market Volatility

00:01:35 Increasing Retirement Contributions During Volatility

00:02:25 Hands-On Investing Strategies for Market Volatility

00:03:37 Portfolio Strategies to Take Advantage of Volatile Markets

00:06:05 Smart Moves for Taxable Accounts

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