Six Tactical Moves for Navigating Down Markets
It's been an eventful week in the stock market—one that investors won't soon forget.
I’m recording this on April 9th, and over the past week, we've seen some of the most dramatic swings in market history. To give some context, this blog is usually written 5 to 7 days before it's released, so the numbers I’m sharing might shift a bit by the time you’re hearing this.
Let’s talk about what’s been happening: As of April 9th, the S&P 500 is down about 15% year-to-date, and the NASDAQ Composite is down around 19%. The majority of those losses came in the past week, triggered by escalating trade tensions and new tariffs announced by President Trump. These reciprocal tariffs caused widespread concern, and investors responded with heavy selling.
But just when things looked grim, today brought an unexpected twist.
The Biggest Market Rally Since 2008
After markets closed today, we saw the largest single-day rally since 2008—a jaw-dropping comeback. The S&P 500 jumped 9.5%, and the NASDAQ surged over 12%. That’s an extraordinary move for a single trading day.
So, what sparked the sudden optimism? President Trump announced a 90-day pause on the reciprocal tariffs, the very ones that rattled investors last week. While tariffs on China are still on the table—and may even increase—this pause gave the market room to breathe.
That said, we’re probably not done with this tariff saga, and it’s very possible we’ll see more volatility in the coming weeks. So how can you stay calm and strategic during these turbulent times?
I’ve got six tactical moves you can make during a market downturn—whether you're trying to take advantage of this current situation or preparing for future dips.
Check out this week’s episode on: 8 Ways to Reduce Your Required Minimum Distributions
1. Buy the Dip
Yes, it’s the obvious one, but it works. If you're not fully invested—say you have money sitting in a savings account, CD, or a conservative bond fund—you can use this opportunity to buy while prices are low.
This could include:
Funding your Roth IRA, HSA, or IRA early for 2025.
Making 529 plan contributions for your children.
Simply putting new money into your investment account.
No one can time the bottom perfectly, but historically, buying during significant declines (think 10% or more) has proven to be a smart long-term move.
“Be greedy when others are fearful.” — Warren Buffett
2. Rebalance Your Portfolio
If the market dropped significantly and your allocation shifted, now may be a great time to rebalance. For example, if your target is 60% stocks and 40% bonds, recent losses might have pushed you closer to 50/50.
By rebalancing, you’re buying more stocks at a lower price—a disciplined way to “buy the dip” without overthinking it. You can do this manually or automate it through your financial advisor or retirement plan provider.
3. Automate Your Investments
Dollar-cost averaging helps you take emotion out of investing. By setting up automatic monthly contributions to your Roth IRA, HSA, 529, or brokerage account, you ensure you’re buying at different price points consistently—up or down.
If you currently invest in a lump sum at year-end, consider switching to a monthly or quarterly schedule instead.
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4. Sell Underperforming Investments
Market downturns reveal weak spots in a portfolio. If you’re holding individual stocks or mutual funds that consistently lag the market—or have lost significantly more than the indexes—consider trimming them.
This is a chance to clean house and replace underperformers with diversified, low-cost index funds or ETFs. Simplifying your portfolio can improve both performance and peace of mind over time.
5. Harvest Tax Losses
If you have taxable accounts (non-retirement), now might be a good time to realize losses to reduce your tax bill. You can write off up to $3,000 in losses against ordinary income per year, and carry forward any extra.
Keep in mind:
Avoid wash sale rules by waiting 30 days before buying the same or a “substantially identical” investment.
Swap into a different ETF or mutual fund with similar exposure if you want to stay invested.
For example, if you sell Apple at a loss, you could buy Nvidia or a tech ETF in the meantime, then repurchase Apple after 30 days if desired.
6. Upgrade to More Tax-Efficient Investments
Mutual funds in taxable accounts can surprise you with unwanted capital gains—even if the fund hasn’t grown. That’s because they pass through gains from internal trades to shareholders.
Consider switching from mutual funds to ETFs, which are generally much more tax-efficient. ETFs typically don’t distribute capital gains during the year, meaning you only pay tax when you sell—on your terms.
If your mutual funds are currently down or flat, it’s a great time to make the switch with minimal tax impact.
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Closing Thoughts
While market drops can be unsettling, they also offer powerful opportunities to improve your financial position. Whether it’s buying at lower prices, harvesting tax losses, or upgrading your portfolio, these six strategies can help you turn market fear into financial progress.
If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question.
As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!
Written by Ryan Morrissey
Founder & CEO of Morrissey Wealth Management
Host of the Retire with Ryan Podcast