Hope Is Not a Strategy: The Importance of Tactical Investing in Uncertain Markets

Yesterday the markets experienced their worst day in five years. The Nasdaq and S&P 500 endured a pounding that hasn’t been seen since 2020!  And today as I'm typing this, it's even worse with the Nasdaq down -5.24% and the S&P down 5.08%!

 

The cause? Uncertainty

 

And if there’s one thing the markets hate, it’s uncertainty. The new tariff announcements from President Trump have stirred anxiety and created volatility that feels like a gut punch to investors.

 

This is your reminder:  Hope is NOT a strategy.

 

When markets are in freefall, it’s natural to hope for a rebound. But disciplined, successful investors know better. Investing on emotion—especially on the hope that “things will just work out”—is a recipe for disaster. Managing risk strategically, especially in times of uncertainty, is how investors not only survive but thrive.

 

Why Tactical Investing Matters

 

Tactical investing means going beyond “buy and hold,” adjusting to market conditions as they evolve. Seeing our main models quickly shift heavily into cash, bonds, money markets, precious metals, and even inverse strategies during this incredibility volatile time, not only gives me more peace of mind, but reminds me just how important defense is. Defense is just as important as offense in investing.

 

These steps are not about panicking or trying to time the market perfectly. It’s about reacting to the market. Moving into defensive assets in a disciplined way can provide peace of mind and protection. It reminds us that investing isn’t about riding every wave; it’s about protecting the ship through the storm .

 

Managing Risk Means Managing Emotions

 

Markets like these bring out all the emotions—fear, frustration, defeat. And let’s be honest: We all have emotions. Investing is deeply personal. Heavy, deep, and sometimes messy emotions are a part of being human. But here’s the thing:  Emotions have no place in investing.

 

This is why tactical investing is critical.

            

History has shown that those who get swept away by their feelings—either chasing rebounds or dumping their assets in a panic—end up the losers. On the other hand, investors who stay disciplined, and focus on risk management emerge stronger and in better positions when the storm clears.

 

So, take a deep breath. Keep calm. And remember: Hope is not a strategy!