If you’ve been following the news lately, you’ve probably noticed a familiar pattern:
Markets are on edge… Stocks are swinging… And media outlets are loving every second of it.
Why? Because global trade tensions are flaring again.
We’re seeing the early stages of tariff wars — Canada, Mexico, the EU, China, and other key trade partners are now in a state of economic standoff with the U.S.
Each new policy announcement brings a wave of uncertainty, and investors are doing what they always do in the short term: reacting emotionally.
If you’re feeling nervous, you’re not alone.
But here’s the inconvenient truth: reacting to market drops is the worst financial decision you can make right now.
A Little Historical Perspective Goes a Long Way.
Market crashes are nothing new. Let’s break it down:
- 1929: The Great Depression. Stocks fell a jaw-dropping 89%. People thought capitalism was over.
- 1974: Inflation, oil shocks, and political instability sent stocks down 48%.
- 1987: Black Monday. A 23% drop in one day. It felt like the financial system had cracked.
- 2000–2002: Dot-com bubble fallout. Tech stocks collapsed, wiping out billions in market value. The Nasdaq alone fell nearly 78%. And right in the middle of it all — the 9/11 attacks. When the World Trade Center was struck in 2001, it wasn’t just a humanitarian and geopolitical crisis — it also rattled an already-shaky market, compounding the downturn. The broader market fell 49% from peak to trough.
- 2009: Global financial crisis. Stocks dropped 57%. The housing market collapsed. Banks were failing.
- 2020: COVID-19. The market crashed 34% in weeks. Everyone braced for a depression.
And yet… after every single crash, the market not only recovered — it hit an all-time high.
That’s not optimism. That’s history.
What’s Different Now? Honestly, Not Much.
Yes, today’s situation is unique — just like every crash before it felt unique.
The headlines today are dominated by trade disputes, tariffs, and threats of retaliation. It’s easy to feel like we’re heading for a serious correction. And maybe we are.
But market corrections (drops of 10%) happen roughly once a year. Bear markets (drops of 20% or more) happen every 3–5 years on average.
Neither is a reason to run.
What matters more than the cause of the drop is how you respond to it.
The Real Danger Isn’t the Market — It’s You!
Investors tend to underperform their own investments. Why? Because they get scared and sell when prices fall.
Then they wait until things “feel safe” again — usually after stocks are already back at or near all-time highs. This behaviour destroys long-term returns.
You can’t build wealth by getting in and out of the market based on emotion. You build wealth by having a plan, sticking to it, and letting time do the heavy lifting.
So, What Should You Do Right Now?
- Zoom out. Look at your portfolio over 5, 10, or 20 years — not 5 days.
- Remember your goals. Are you investing for the next quarter, or for retirement 15 years from now?
- Rebalance if needed, but don’t panic sell. Minor adjustments are fine — wholesale liquidation is not.
- Add to your positions when others are fearful. Volatility often brings opportunity. Buying on sale beats buying at all-time highs. Better yet, stick with your plan, even if it’s tempting to buy the dip (you never know how low it will go.)
- Stay diversified. Don’t bet your future on one country, one company, or one sector.
The Bottom Line: Every Crash Felt Like the End. None of Them Were.
Markets are noisy. Fear sells. But wealth is built quietly — with patience, discipline, and perspective.
At The Money Couch, we’re here to remind you that there’s always change in the cushions — and often, that change is found by staying calm when others aren’t.
Now, could this actually be the end of the world as we know it?
Sure. There’s always that chance. But if it is… we’ve probably got bigger problems than portfolio performance. In that case, it’s time to start stocking up on canned beans, sharpening survival skills, and watching a few reruns of The Walking Dead for tips on post-apocalyptic living.
But short of that, the smart move is to stay the course. Stay diversified. Stay grounded. And don’t let headlines hijack your long-term financial goals.
Because if history holds up — and it usually does — this too shall pass.
And on the other side of it? A new all-time high!
