Should You Avoid Investing During a Recession?

If you’ve ever stared at a sinking stock market and thought, “Maybe now isn’t the time to invest,” you’re not alone. Recessions have a way of shaking even the most seasoned investors. As headlines get louder, the instinct to protect what you’ve built kicks in hard. So, should you avoid investing during a recession?

At LaTour Asset Management of Springfield, our answer is measured: Not necessarily—but it depends entirely on you. There are many things at play: your financial goals, your comfort level, your time horizon, and your plan. We want to help you figure out what that really means.

Market Timing vs. Personal Timing

Trying to time the market—especially during a downturn—is notoriously difficult. No one rings a bell when the market hits bottom. And historically, some of the strongest growth days have come right after some of the worst drops.

However, investing isn’t just about timing the market. It’s about timing your life, too. So, we encourage our Springfield clients to ask:

• Is my financial foundation stable enough to invest right now?
• Am I investing for short-term returns or long-term growth?
• How would I react emotionally if the market dipped again?

There’s no one-size-fits-all answer (and there shouldn’t be).

What’s Actually Happening During a (Real) Recession?

Recessions are often misunderstood. While they reflect an economic slowdown, they don’t automatically mean doom and gloom for your entire investment portfolio. In fact, downturns can create opportunities for investors who are positioned wisely and think long-term. Here’s what tends to happen:

• Asset prices dip, which means long-term investors may be able to buy more for less.
• Emotions rise—but long-term strategies rooted in planning tend to outperform reactionary ones.
• Those with strong income and cash reserves can often continue investing with discipline.

At LaTour Asset Management of Springfield, we help clients think through all of this—not just whether to invest, but how it fits within a broader retirement picture.

When Investing During a Recession Might Make Sense

Again, this isn’t advice. But here are a few reasons why some investors choose to stay the course—or even lean in—during economic downturns:

• Lower Valuations: Certain investments may be undervalued compared to their long-term potential.
• Longer Time Horizon: If you’re not retiring for 10 or 20 years, today’s prices may look like a bargain later.
• Dollar-Cost Averaging: Continuing contributions during down markets can reduce the average cost of your investments over time.
• Strategic Roth Conversions: When values are down, converting to a Roth IRA could offer long-term tax advantages.

In Springfield, MO, we’ve helped many investors evaluate these opportunities—but always within the context of their goals, their timeline, and their risk tolerance.

When Caution Might Be the Smarter Call

Just as importantly, there are times when it might make sense to pause or adjust:

• If you’re relying on those funds in the short term.
• If you haven’t built up your emergency savings.
• If market volatility is keeping you up at night.
• If you’re nearing retirement and haven’t rebalanced in years.

In short, if investing right now adds stress instead of value, it’s okay to take a step back and reassess. Having a plan—and a trusted partner—can bring clarity.

It All Comes Back to Your Retirement Strategy

At LaTour Asset Management, we don’t make decisions based on headlines. We help people in Springfield and the surrounding area create retirement strategies that work in all market conditions—not just the sunny ones.

Whether it’s evaluating your IRA contributions, planning a tax-efficient rollover, or building an income strategy that holds strong through any cycle, our focus is long-term confidence, not short-term reaction. Call us today at (877) 888-5724 to book your no-obligation consultation.