Markets are down, and everywhere you look, there’s talk of panic. Some investors expect a quick rebound. Others picture worse declines. Neither camp is guaranteed to be right, but both are at risk of letting emotion override logic.
The best tool we have during times like these isn’t a crystal ball - it’s a clear head.
Emotions under pressure
In any market slump, fear spreads like wildfire. Even long-term investors can get antsy when their portfolios turn red. Meanwhile, confident voices emerge, claiming they timed the top, or they’re about to catch the absolute bottom. Anxiety and envy swirl together, pushing people toward rash decisions. Price dips by 5%. Then, another 5%. At each step, folks wonder: Should I just sell everything?
All it takes is one ill-timed decision—rushed by panic or lured by ego—to lock in losses that could’ve been avoided. That’s the hidden cost of emotional investing.
Instead of building wealth, you end up building regret.
Learning to detach with a Navy SEAL
Jocko Willink is a former Navy SEAL commander, decorated for his leadership in the Battle of Ramadi. He’s now known for his bestselling book Extreme Ownership, where he champions the principle of “detachment”—stepping back before reacting so you can see the bigger picture and make better decisions. He illustrates this concept with a vivid moment from close-quarter battle training:
Each SEAL was focused on a specific field of fire, weapons trained and ready for orders. Although Jocko wasn’t the designated leader at that time, he sensed the tension mounting. Every moment increases the tension, and panic would result in dire consequences. A young Willink lifted his rifle to high port, physically withdrawing from the immediate fray. That brief pause allowed him to scan the environment, catch a clearer view of threats, and make a decisive call. By detaching for just an instant, he dodged what could have been a costly error—and did it by simply taking a breath in the midst of chaos.
Investing doesn’t have the life-or-death stakes of warfare, and it’s no place for the bravado of comparing ourselves to special operators. Still, the underlying lesson stands. When markets tumble or headlines grow dire, emotions run high. Detachment means pausing before reacting to every price swing. Ask: “Is this business fundamentally broken, or am I just seeing fear play out?” Often, you’ll find the situation is less dire than your adrenaline suggests.
A “pause rule” can reinforce this discipline. A small window, like Willink’s “step back”, creates space for rational thought.
Markets have seen it all
Global share markets can feel chaotic right now, yet this is hardly the first time investors have encountered unsettling headlines or tumbling share prices. Over past decades, crises of every sort—currency meltdowns, technology bubbles, wars, and pandemics—have tested the resolve of even the most composed investors. Long-term returns, however, have been remarkably resilient for those willing to look years down the road rather than days.
The Australian share market, for instance, transformed a notional $10,000 into over $130,000 across the past three decades. That growth happened alongside repeated corrections, a global financial crisis, and several episodes of geopolitical turmoil. There were no guarantees along the way. Yet the pattern of recovery emerged time and again, underscoring how human ingenuity and corporate enterprise often drive markets to surpass previous highs.
Opportunities in the chaos
Short-term pain is never pleasant. Portfolios lose value and emotions escalate. This environment, however, can create openings for patient investors who distinguish between genuine problems and fleeting panics. It’s true - some companies inevitably falter. Many others remain fundamentally strong, yet their share prices drop alongside the broader market. Those willing to sift through the rubble can find promising businesses at valuations that suddenly seem more attractive.
This approach does not rely on heroics or a perfect forecast of the bottom. Rather, it hinges on the belief that enterprises tackling real-world problems and fulfilling customer needs will generate returns over time. Market downturns simply accelerate the process of separating hype-fuelled shares from more grounded opportunities.
Thinking beyond the headlines
Confidence does not require dismissing valid concerns. It means recognising that markets have repeatedly overcome significant challenges. Innovative companies continue to solve problems, make profits, and compound. While the short term may spark worry, this is often when disciplined buyers who hold a multi-year horizon can lay the groundwork for future gains.
Valuations may take time to reflect a business’s true worth, but they tend to do so eventually. That is why steady compounding, buoyed by rational decision-making, forms the cornerstone of success for many experienced investors. Instead of being caught off guard by sudden declines, they adapt, evaluate new opportunities, and continue moving forward.
When the dust settles
Every sell-off feels unique, yet time and again, markets have shown resilience. Fear subsides, optimism returns, then innovative and quality businesses resume their climb.
No one is suggesting that decline is pleasant or that future events are guaranteed to mirror the past. The difference lies in staying rational, following through on solid due diligence, and keeping an eye on how profitable enterprises eventually regain their stride. That is the essence of prudent investing: not trying to dodge every dip, but retaining the conviction and clarity to make measured decisions when skies darken.
Stepping back for the long haul
A falling market can feel like a crisis or an opportunity, depending on your perspective. Detached investors often treat it as both. A crisis if you ignore valuations and trade on emotion. An opportunity if you’ve protected your downside and patiently wait to buy quality assets at attractive prices.
This approach doesn’t guarantee you’ll never see red ink in your portfolio. But it does increase your odds of thriving over the long run.
Rationality doesn’t win headlines, but it wins in the end. Markets will always fluctuate, headlines will always sensationalise, and fear will always rear its head. Your job is to stay calm, stay humble, and stay in the game.
Do that, and you give yourself the best chance of turning turbulence into long-term gains.
Leigh Gant is the Founder and CEO at Unio Growth Partners. This article is for general information purposes only as it does not consider the individual circumstances of any person. Investors should seek professional investment advice before acting.