Selling During Market Volatility Turns Temporary Losses Into Permanent Ones
TL
Talia Lockwood
Dave Ramsey · Apr 11, 2026
Source: The Digital Ledger Data Terminal
Selling investments out of fear during a market dip reduces long-term returns. This occurs because missing a handful of rebound days can significantly lower the overall growth of a portfolio. Selling locks in losses that would otherwise be temporary, turning them into permanent ones.
Recent market volatility was triggered by escalating tensions between the U.S. and Iran. Oil prices spiked after Iran largely closed the Strait of Hormuz, which increased uncertainty for investors and caused portfolios to dip.
Dave Ramsey advises investors to maintain a long-term mindset, typically thinking in terms of at least three to five years. He points to the COVID-19 market crash as an example, noting that the market recovered to pre-pandemic levels 57 days after the plunge in early 2020.
Dave Ramsey
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