Why do declines feel different than returns
When the market goes up it is easy to think that we are investing for the long term. When the market goes down, those numbers become much more emotional, and the temptation to move to a conservative track increases.
The problem is that moving out of fear is sometimes done after the decline has already occurred. In such a case the saver may exit the market at an inopportune time and miss a future recovery, if it occurs.
When should a change be considered?
If the declines have revealed that the investment path does not suit your character or an imminent need for money, there may be room to consider a change. But even then you should do it as part of a plan, and not as a momentary reaction.
Those who need money soon, those who do not have a security cushion or those who are unable to bear high volatility should re-examine the level of risk. The goal is adaptation, not escape.
How to act in a balanced way
Before changing course, ask: when do you need the money, what was the original investment horizon, has anything changed in life, and what will happen if the market recovers after the change.
In many cases, it is better to make a gradual adjustment or get advice, instead of making a sudden change. Discipline during downturns is a key part of long-term savings success.