AS I WRITE THIS, the market opened up way down, dropped more well into bear market territory but now is UP about 1% from it’s Friday close. When there are BIG market moves like this we often see swings in both directions. (Update, I just finished writing the caption and we’re down 2% again. BUCKLE UP, FAM).

A bear market is defined as a market that’s down at least 20% from a recent high. Sometimes those down prices need to be sustained for a couple months, so this may not live in history as an official bear market yet, but we’re flirting with it today.

So what does that mean for YOU? Outside of this cute angry emoji bear, not much. If your plan was to invest early and often for decades, that’s exactly what you should keep doing. Bear markets are PART of the plan. We expect them to happen. We just don’t know when (or why) they’re happen along the way.

I’m hearing sentiment from a lot of people that “this time is different”. Political and democracy implications aside, they’re saying this is a self-inflicted wound and an unforced error. I think their argument is that makes this crash somehow worse than the ones before. i.e. if the pilot of an airplane is slamming the yoke all the way forward to nose dive the plane, you don’t have much hope for a safe landing.

I might argue the opposite is true. If the ONLY issue is the pilot slamming the yoke forward, it’s relatively easy to correct. Better, say, than both engines going out. Leaving the airplane metaphor, I could see Trump making a statement any day along the lines of “lol. it was all a negotiation tactic and I won because I’m the best negotiator so now we don’t need tariffs anymore unless those penguins are naughty again”. I wouldn’t say eroding faith in American economic stability is a GOOD thing, but it might send the market shooting right back up to its previous record highs. (Or might not, who knows).

At any rate, selling in a panic has never historically been a good idea. I’m not. My investment accounts “trade” button continues to collect dust.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

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By: Gabriela Gonzalez
Title: Bear markets are normal. Freaking out isn’t a strategy
Sourced From: www.personalfinanceclub.com/bear-markets-are-normal-freaking-out-isnt-a-strategy/
Published Date: Tue, 08 Apr 2025 18:52:12 +0000

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