One of the biggest tests for investors — and, for savvy investors, one of the biggest opportunities — is how they behave when the market gets rocky.

There are essentially two things every investor can do when the market suffers a downturn. These might sound oversimplified, but it is important to distill these options as far as possible:

  • They can do something.
  • They can do nothing.

As the SVP of Investments at Fundrise, I interact with people building strategies around their financial futures every day, and the happiest investors generally (in terms of panic, stress, and overall returns) are the ones in the latter group: those who are able to sit back and comfortably watch the market follow its due course, regardless of temporary ups and downs.

Of course, they don’t enjoy this kind of luxury and confidence because they’ve truly done nothing. Rather, they’re able to view…

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