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Markets don't need much of an excuse to throw a tantrum.

A few inflation headlines, some oil price drama, and suddenly markets are shaking more than your old share house washing machine.

We've seen it play out a handful of times already this year - equities dipping, group chats lighting up with "are we heading into a recession?" and investors doing that thing where they refresh their brokerage app every 11 minutes.

But the real question isn't whether volatility will happen, it's whether you've got a plan for when it does.

So before you do anything rash, here are three things worth trying instead.

1. Zoom out, because your brain won’t do it for you

Volatility has this sneaky ability to warp your sense of time. One rough week and suddenly you're not thinking like a long-term investor anymore.

Everything feels urgent. Every dip feels like the beginning of something catastrophic.

That's not weakness - it’s just how our brains are wired to operate. Research shows that fear spreads fast among investors during market swings, amplifying panic in ways that make downturns feel worse than they actually are.

Add social media which tends to focus on doom-and-gloom topics, and it's genuinely hard to stay rational.

But there is a way to reframe everything. Instead of asking "what do I do right now?", try asking "has anything actually changed about the long term picture?"

In most cases, the honest answer is no.

Markets are reacting to new information (oil prices, a central bank comment, a geopolitical flare-up) that probably has very little to do with where your portfolio will be in ten years from now.

That’s why a 5% dip on Wednesday is not a signal to blow up your strategy. It's just another Wednesday.

2. Build a system that removes emotion from the equation

Saying "I won't panic sell" is easy. Actually not panic selling when your portfolio is down and the headlines are screaming is a completely different challenge.

The investors who tend to come out the other side of volatility in good shape aren't necessarily smarter or more emotionally resilient. They just have better systems.

What does that look like in practice?

• Automated contributions so you're consistently buying regardless of what the market is doing.
• A pre-defined asset allocation you've already committed to.
• A plan you wrote down when you were calm, that you can refer back to when you're not.

The goal is to take your future self (who might be tempted to do something emotionally satisfying but financially silly) out of the driver's seat before the moment arrives.

3. Make sure your money isn't all moving in the same direction

A lot of young investors are running growth-heavy portfolios. Makes sense - when you've got time on your side, you lean into equities and let compounding do its thing.

But the downside of a growth-heavy portfolio is pretty obvious when markets head south: everything drops together.

This is where fixed income earns its quiet reputation.

Bonds don't behave like shares. When uncertainty spikes, investors get nervous and often rotate towards defensive assets, which can help bonds hold their value or even tick up while equities are falling.

It's not perfect and it won't eliminate losses but it changes the shape of your downturn.

The data backs this up: Morningstar research found that over the past 30 years, Australian government bonds were positive around 80% of the time when local shares fell over a three-month period. That's a meaningful cushion.

One way to access this? Fixed income ETFs.

Franklin Templeton strategies give you exposure to a diversified basket of bonds in a single trade, without needing to be a fixed income expert. For investors looking to explore fixed income, ETFs are one of the more accessible entry points into the asset class.

Find out more about Franklin Templeton’s fixed income capabilities

Markets will keep doing what markets do. The edge isn't in predicting them. It's in building something sturdy enough that you don't need to.

Disclaimer:

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