SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Rogelio Gonzalez, CRPC®, CSRIC™
Financial Planner
Prudential Advisors
Pacific Northwest Financial Group
1700 SE Mile Hill Drive, Suite 264
Port Orchard, WA 98366
Phone: 360-919-4271
Email: rogelio.gonzalez@prudential.com
Website: www.prudential.com/advisor/rogelio-gonzalez
July/August 2026
Facing Volatile Stock Markets
After experiencing a significant loss in a particular stock or sector, an investor might become overly risk averse. The pain from the loss distorts their future decisions. Instead of evaluating opportunities logically, they steer clear of anything that reminds them of the investment that caused the pain.
Be wary of this psychological defense
If you've recently experienced major losses in a specific stock or sector, it's normal to feel a bit shaken. You're not alone. Many investors deal with the emotional impact of such downturns. However, allowing those tough experiences to influence your future choices can hinder your financial progress.After a rough patch, it's common to become overly cautious. You might find yourself avoiding investments that even slightly resemble what caused your initial loss. This psychological defense can lead to missed opportunities. Markets are all about movement, and while it's wise to be careful, being excessively risk-averse can prevent you from making smart investments.
A better course of action
If you're feeling hurt by a stock loss (real or on paper), your best course of action is to step back and reassess. Remove your emotions from the equation. Look at the markets objectively. What you need to realize is that the investment landscape is always changing. Just because one sector took a hit doesn't mean it's doomed forever. Conduct research and consider how other companies handle similar challenges.Approach new opportunities with an open mind. Instead of putting all your bets on a single area, consider diversifying your portfolio—if you haven't already—to include different sectors. That way, if one area encounters volatility, you have other investments to rely on.
Look before you leap
Instead of avoiding an entire investment sector or stock altogether, review your investment goals. Does your strategy need to change going forward, or are you reacting out of fear? Evaluate opportunities fairly and rationally with your advisor, and remember that the market is cyclical. By keeping your emotions in check and focusing on sound strategies, you can navigate volatile markets more confidently.*Asset allocation won't guarantee a profit or ensure against a loss but may help reduce volatility in your portfolio.
1096658
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Rogelio Gonzalez is a Financial Planner with and offers securities and investment advisory services offered through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
"Prudential Advisors" is a brand name for the propriety retail sales channgel of The Prudential Insurance Company of America ("PICA") and its insurance company and other affiliates (collectively "Prudential"). Prudential Advisors financial professionals are licensed insurance agents of Prudential.
Pursuant to a strategic relationship among Prudential, LPLE, and LPL Financial, Prudential Advisors financial professionals provide securities brokerage services and/or investment advice on securities solely as registered persons of LPLE, an affiliate of LPL Financial. These financial professionals are permitted to brand under "Prudential Advisors".
LPLE and LPL Financial are not affiliated with Prudential or Pacific Northwest Financial Group.
Prudential, Prudential Advisors, and the Pacific Northwest Financial Group are not registered as a broker-dealer or investment advisor.
Pacific Northwest Financial Group and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.