A Young Investor’s Greatest Opportunity: Making Market Dips Work for You

By: R. Travis Evans, CFP®

It’s easy to invest when everything seems to be going well. The headlines are optimistic, markets are up, and everyone feels confident about the future. But what separates successful long-term investors from everyone else isn’t what they do during the good times; it’s how they behave when things feel uncertain.

When markets fall, many people instinctively pull back or wait for things to “settle down.” That reaction is understandable. Nobody enjoys watching the value of their investments drop. Yet for younger investors, especially those still early in their careers, those uneasy moments can quietly become some of the most valuable opportunities they’ll ever have.

Why Down Markets Can Be a Good Thing

Market downturns are not rare events; they’re part of the normal rhythm of investing. Historically, every decline has eventually been followed by a recovery, often stronger than the one before. When prices fall, your dollars can actually go further: buying more shares or fund units for the same contribution. Over time, those additional shares become the foundation for future growth when markets rebound.

That doesn’t mean you should try to “wait for” the next downturn. Timing the market is notoriously difficult, even for professionals. The real benefit comes from staying invested consistently, so that you’re automatically buying both when prices are high and when they’re low. That’s where the concept of dollar-cost averaging comes in.

Understanding Dollar-Cost Averaging

Dollar-cost averaging (or DCA) simply means investing a fixed amount of money at regular intervals, regardless of what’s happening in the market. Instead of trying to guess when prices will rise or fall, you commit to investing on a schedule - perhaps every paycheck or once a month.

When the market dips, your fixed contribution buys more shares. When the market climbs, it buys fewer. Over time, this smooths out the impact of volatility and can lower your average cost per share. More importantly, it removes emotion from the process. You’re not reacting to fear or excitement, you’re following a plan.

Dollar-cost averaging doesn’t guarantee higher returns compared to investing a lump sum all at once, but for many people it’s far more realistic and sustainable. It helps build discipline, prevents paralysis during turbulent periods, and keeps you focused on the long game rather than the latest headline.

Avoiding the Temptation to Wait

A common misunderstanding is that it’s smart to “sit on cash” until the market drops. The truth is, by the time it feels safe to jump back in, the rebound is often already underway. Waiting for the “perfect” entry point usually means missing the early and most powerful part of a recovery.

A better approach is to keep contributing on your normal schedule. If you happen to have some extra cash available during a down market, view that as an opportunity to add a little more. Think of it less as “buying the dip” and more as “taking advantage of a sale” while staying true to your plan.

How This Applies to Young Professionals

For early-career veterinarians and other young professionals, time is the greatest advantage. You have decades ahead for your investments to grow and recover from any short-term volatility. Each downturn you experience early on isn’t a setback- it's potentially a head start.

Income typically increases over time, so the habits you build now will scale naturally as your earnings grow. Establishing automated contributions makes saving and investing something that happens without constant decision-making. The earlier you start that routine, the easier it becomes to stay the course when markets fluctuate.

Keeping Perspective

Down markets can trigger fear, but they also provide clarity. They remind us that investing isn’t about guessing what will happen next month or next year, it’s about owning pieces of productive companies and assets that, over long periods, tend to increase in value. The temporary declines are the price of admission for long-term growth.

If you can train yourself to see those moments as opportunities rather than threats, you’ll be positioned far ahead of those who sell out in panic or freeze on the sidelines.

Final Thoughts

The most successful investors don’t wait for perfect conditions; they build habits that keep them moving forward regardless of the market cycle. By embracing dollar-cost averaging, keeping emotions in check, and viewing volatility as a normal part of the journey, you set yourself up to benefit from time, discipline, and compounding.

If you’d like help setting up a consistent investment strategy or deciding how much to contribute, we’d be glad to walk through it with you. Ask us to review your current plan and we'll make sure your approach is designed to turn the next market dip into an opportunity rather than a setback.