The market has taken a dive, and so has your investments. It feels like a punch to the gut, and now you're worried about your financial present and future.

You’re not alone. Many feel the way you do. But before you make any drastic moves, let’s look at eight things you should do when the stock market takes a downturn:

1. Breathe.

Stay calm. Market downturns are nothing new. The stock market goes up, and it goes down—it's part of the process. You knew investing wasn’t risk-free. The most important thing now is not to let panic drive your decisions.

2. Avoid emotionally driven decisions.

If the market drop is making you anxious or upset, step away from your computer or phone for a moment. The urge to sell your investments and bail out of the market is a common reaction during downturns. However, these emotional decisions often lead to losses or missed gains in the long run. Investing is about enduring the inevitable ups and downs. So, instead of selling, keep a steady hand and resist the temptation to make rash moves.

3. Stick to your plan.

Continue contributing to your retirement accounts. If you have automatic deductions from your paycheck, don’t reduce them. One of the benefits of a market decline is that everything is on sale. This is a prime opportunity to buy mutual fund shares at a lower price. This strategy is known as “dollar-cost averaging”—consistently purchasing investments regardless of market highs or lows. When you invest steadily over time, you reduce the risk of buying in only when the market is high, leaving less room for growth.

4. Consider investing more.

Since the market is offering "discounted" prices, why not take advantage? It might seem counterintuitive but buying more shares now could pay off significantly in the future. You've heard the saying “Buy low, sell high”—now is the perfect opportunity to do just that. If you can, consider purchasing a few extra shares of your mutual funds while prices are low.

5. Don’t follow the crowd.

Just because everyone else is making specific money moves doesn’t mean it’s the right choice. The herd mentality can lead a lot of people to make poor financial decision. Stay informed and make decisions based on your long-term strategy, not short-term reactions.

6. Review your asset allocation.

A market downturn is a good time to review your investment portfolio. Over time, your asset allocation (the way your investments are divided between stocks, bonds, and other assets) may shift due to market fluctuations. Check if your current allocation still aligns with your risk tolerance and long-term goals. If you’re closer to retirement, for example, you may want to shift more into safer assets like bonds. However, if you're many years away from retirement, staying invested in stocks may still make sense.

7. Don’t time the market.

Trying to predict the best time to enter or exit the market can be tempting, especially during volatile periods. But it’s nearly impossible to time the market consistently. Even seasoned investors struggle with this. Historically, missing just a few key days of market recovery can drastically reduce your long-term returns. Rather than trying to time the market, stick with your investment strategy, and trust the process over the long term.

8. Seek professional advice.

If you're unsure about how to respond to the market downturn, it might be helpful to consult a financial advisor. A professional can provide a second opinion, help you reassess your investment strategy, and ensure that your portfolio is on track to meet your goals. A financial advisor can also offer emotional support during times of market uncertainty, helping you make decisions based on logic and strategy rather than fear. For specific investment advice, we recommend Certified Kingdom Advisors.

Your reaction during market downturns can have a lasting impact on your financial future. Staying calm and focused on your goals will help you make smarter decisions. While adjustments may be necessary, they should be based on thoughtful strategy—not fleeting emotions. Your ability to stay the course during turbulent times could be the difference between delaying retirement and being ready for it when the time comes.