Investing Against the Grain: When Smart Money Moves Feel Wrong
Some things in life are just common sense. Don’t stand on the top rung of a ladder. Avoid clicking that shady-looking email link. Simple, right?
But when it comes to investing, the best moves aren’t always so obvious. In fact, some of the smartest decisions feel downright wrong in the moment. Our instincts often tell us to avoid risk, take action when markets swing, or compare our portfolio to the S&P 500. But following those impulses can actually hold you back from long-term success.
Let’s break down a few counterintuitive “money moves” that can help you build lasting wealth.
Doing Less Often Leads to Better Results
The Scenario: You turn on the news and see headlines screaming about a market drop—or a sudden surge. The urge to do something is real. After all, how can you just sit there while your investments move up and down?
The Counterintuitive Move: Stay put.
Successful investing isn’t about reacting to every market movement; it’s about patience. One of the best examples of this comes from the Voya Corporate Leaders Trust, a fund established in 1935 with an unusual rule: It bought shares of 30 companies and then… just held them. No new stocks could be added, and sales were only allowed in rare cases like bankruptcies or mergers.
Despite its hands-off approach, this fund has outperformed many actively managed portfolios—and at times, even the S&P 500. The takeaway? Staying the course often wins in the long run.
Your Portfolio Shouldn’t Match the S&P 500
The Scenario: The S&P 500 had a blockbuster year in 2023 and 2024, and your portfolio didn’t quite keep up. You start wondering if you should have just gone all-in on an index fund.
The Counterintuitive Move: Stop comparing.
The S&P 500 represents the 500 largest U.S. companies—not your goals, your timeline, or your financial needs. Your portfolio is built for you, whether that’s funding your retirement, paying for your kids’ college, or leaving a legacy.
Take the classic 60/40 portfolio (60% stocks, 40% bonds). It’s not designed to beat the S&P 500 in the best years, but it is designed to provide stability when markets get rough. Chasing performance can leave you exposed to more risk than you realize. The real goal? Having a portfolio that helps you reach your financial milestones, not Wall Street’s scoreboard.
Bear Markets Are Buying Opportunities
The Scenario: When markets drop, your gut tells you to sell before things get worse. Watching your account balance shrink is painful, and sitting tight feels like doing nothing while your wealth disappears.
The Counterintuitive Move: Lean in.
Market downturns aren’t just something to endure—they’re opportunities. When prices drop, high-quality investments go on sale. Instead of panicking, consider rebalancing: selling a bit of what’s still strong and buying more of what’s undervalued.
Historically, bear markets don’t last forever. In fact, they always reverse. And when they do, the biggest gains tend to happen early. Investors who stay the course—and even add to their positions—are often the ones who come out ahead.
The Bottom Line
Investing isn’t about following your instincts—it’s about sticking to a strategy, even when it feels wrong in the moment. Whether it’s resisting the urge to tinker with your portfolio, ignoring the S&P 500’s scoreboard, or embracing a market downturn as an opportunity, these counterintuitive moves can help you stay on track for the long haul.
When in doubt, remember: The best investment strategy isn’t the one that feels right in the moment—it’s the one that works over time.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All investing includes risks, including fluctuating prices and loss of principal.