Markets dislike bad news. However, if there’s one thing they hate even more, it’s uncertainty. Are job numbers expected to dip slightly in the next report? Not ideal, but manageable — the market has likely priced it in. But what if job losses come in far worse than expected? Suddenly, investors panic, stocks slide, and headlines scream “economic slowdown.” It’s not necessarily the actual event that shakes the market. It’s the surprise. Markets live and breathe on expectations. When investors have clarity, they can price assets accordingly. When those expectations are muddied by the forces of “change” (e.g., a looming recession, central bank policy pivots, or global crises) volatility surfaces. So what can investors do? While uncertainty is inevitable, understanding its impact and outlining a plan to respond to various variables can help you develop a resilient portfolio. Let’s break down why markets react the way they do and how investors can right the ship amid turbulence. Why Markets Hate Uncertainty Markets Are Forward-Looking Stock prices are a real-time reflection of current information and future expectations. Investors analyze corporate earnings, interest rate trends, geopolitical events,