I now have few years under my belt, and one thing I am quite confident in saying is that history will continue to repeat itself: the stock market will go up, and it will go down; interest rates will rise, and they will fall; and as always, we have no control over any of this, other than trying to minimise the impact of these bumps.

As investors, we ask why things are happening and look to place blame. I remember very clearly in the late 1980s my grandfather complaining that Australia was going to “the dogs”. Mortgage rates for homeowners climbed to about 17 per cent around this time, making it one of the most challenging periods for borrowers in Australia’s economic history. Mortgage defaults were common, and families were losing their homes.

On the other side of the coin, interest rates on savings in Australia were 14 per cent, driven by the Reserve Bank of Australia’s (RBA) efforts to combat high inflation.

Although the specific rates might be different today, these events in the Australian context sound very familiar more than 30 years on.

So, given that history repeats itself and the average investor has no control over government policy, economic policy, trade or tariff negotiations, how do we navigate a choppy, turbulent and potentially downward market without losing everything?

Keep your eyes on the long game

When the market is bouncing all over the place, it’s tempting to react to every dip and spike. But the truth is, short-term volatility is just white noise. What really matters is your long-term plan. If you’re investing for goals like retirement, buying a home or funding your child’s education, don’t let a few bumpy months derail you.

Think of it this way: history has taught us that over time, the stock market recovers from downturns. Although it is hard, by staying focused on your long-term goals, you can avoid making emotional decisions that might hurt your portfolio in the long run.

Diversify: spread your investments

You have probably heard the saying, “Don’t put all your eggs in one basket.” This is especially true in a choppy market. Market downturns typically highlight your overall investment diversification, telling you whether your strategy is working or you need to shuffle things within your portfolio.

Diversification means spreading your money across different types of investments, for example, stocks, bonds, real estate and even cash. This way, if one area of the market struggles, others may help to balance things out. Diversifying won’t eliminate risk, but it can help smooth out the bumps.

An old rule of thumb is to subtract your current age from 100. The result indicates how much of your investments you should allocate to the stock market. For example: If you are 42 years old, 100 – 42 = 58, so you can allocate 58 per cent of your investments to the stock market. As you get older, you can reduce the amount you allocate to the stock market, as preservation of your capital becomes far more important that significant growth.

Invest in strong, reliable companies

When the markets are turbulent, it’s a good time to focus on quality. Look for companies with strong financials, a history of steady earnings and a competitive edge in their industry. These are the businesses that are likely to weather the storm and come out stronger on the other side.

Avoid chasing “hot” stocks or speculative investments that promise quick gains. Instead, stick with companies that have proven they can handle tough times. Think of brands you trust and use every day – these are often good places to start.

Use dollar-cost averaging to your advantage

Trying to time the market is a losing game. Don’t waste your time. Instead, consider dollar-cost averaging. This simple strategy involves investing a fixed amount of money at regular intervals, no matter what the market is doing.

For example, if you invest $200 every month, you’ll buy more shares when prices are low and fewer shares when prices are high. Over time, this can lower your average cost per share and take the guesswork out of investing. Plus, this helps you stay consistent, even when the market feels unpredictable.

Keep some cash on hand

One thing I have learnt from Warren Buffett is that having cash reserves is like having a little pot of gold. It gives you the flexibility to take advantage of opportunities when prices drop, which is the goal with any investment: you want to pay the lowest price possible price for it.

I recently listened to an investment podcast, and their recommendation was to keep a small portion of your portfolio available (about 5 to 10 per cent) in cash or cash equivalents like a high-yield savings account or money market fund. I thought was a good piece of advice because it means that you’ll be ready to act when the time is right.

Don’t let the news scare you

The news can be an investor’s worst nightmare. It is easy to get caught up in doom-and-gloom headlines. But remember, the media often amplifies fear to grab attention, and with recent legislation across the pond no longer requiring “fact checking” prior to reporting, I would estimate that half of what is being said is complete garbage.

Although it’s important to stay informed, don’t let sensational news dictate your investment decisions. Instead, focus on the big picture. Ask yourself: has anything fundamentally changed about the companies or funds I have invested in? If the answer is no, it’s probably best to stay the course.

At the end of the day, the most important thing to remember is that volatility is normal. Markets go up and down, but over time, they tend to trend upwards. By staying disciplined and sticking to your own plan or the one that you and your financial adviser have discussed, you can avoid costly mistakes and position yourself for long-term success.

• Carla Seely has 25 years of experience in international financial services, wealth management and insurance. Over the course of her career, she has obtained several investment licenses through the Canadian Securities Institute. She holds the ACSI certification through the Chartered Institute for Securities and Investments (UK), the QAFP designation through FP Canada, and the AINS designation through The Institutes. She also holds a master’s degree in business and management