Every time a bull market enters a correction period, it becomes a bare market, and investors lose tens of thousands, hundreds, millions or millions of dollars in a short amount of time.
“Is it different this time?”
We know that the stock market has always risen over time and has risen to the right.
If you need evidence, here are some good examples of how time in the market has always been in your profits.
If you stay in the market long enough, history tells us that we make money, despite probably having to go through some deep dives. That’s why Dr. Jim Dahl always keeps track of course, why other investors talk about buying dip, why WCI columnist Rikki Racela writes about his desire to buy stocks for sale, and why Warren Buffett declare When others are afraid, you must be greedy. Down Market is a ripe market for making money.
That’s all good advice. But questions always came when the dot.com bubble burst, the Great Recession began, and when the Covid era made life difficult for investors. Is it different this time?
It has been mixed for the past 12 days. After President Trump raised tariffs around the world on the so-called liberation day on April 2, markets have plunged into a downward spiral. The market has suffered two days since Trump’s announcement That largest two-day reduction Over the past 70 years, more than $6 trillion has been wiped out almost instantly. There was a bit of relief a few days ago (when most tariffs were suspended for 90 days), and the market had one of the biggest one-day jumps in history, but the rest of the week brought almost more pain. On April 1st, the Dow Jones were 40,225. By the end of April 11th, it was 40,212.
Recently, when I saw a 401(k) or taxable brokerage account, I probably felt a wave of nausea. Beyond internet forums and comments sections, the same questions are bubbled up to the surface once again. Is it different this time?
The best answer I can give is kind of, but probably not. Now, let’s look to financial experts who trust what to do these days to shake up feelings of panic selling and to get out of the political bubble that says this market slump is a genius stroke or an insane stroke.
Is it different this time?
This is Suze Orman I wrote it on Facebook April 4th:
“I know a lot of people are afraid of what is going on in the economy and the stock market. So here is my view. We are looking at another downday for today’s market. Why is China retaliating and it has investors. The market is predicted to be lower as a result.
Now I know that many of you are dollar cost averaging – it’s still okay – but ask me about this: if you’re going to continue that strategy now, do it seriously. This is not the time to be aggressive.
There are signs that feel like 2022. Emotional. It’s uncertain. nevertheless. . . I want you to breathe. The market will eventually recover. But not everything at once. If these duties remain, it will take some time. So remember: the money you have in the market should have been money you didn’t need for at least five years. Let’s play this.
If you are contributing to your retirement account, do not stop it. Continue the course. Keep your investment steadily. That consistency is your strength. ”
This is what Mike Piper wrote An unforgettable investor April 7th:
“If you’re thinking, ‘It’s not this time!” Yes, this time everytime different. That’s the important thing to understand.
In early 2020, coupled with the pandemic, it declined very rapidly. It was certainly a new scary experience. In 2008-2009, there was a rapid and substantial decline, coupled with the slightest possibility that if too many large institutions collapsed, it would become a whole system if they failed. It was a new and terrifying experience. From 2000 to 2002, it declined significantly. I just continued And it was tied to something like a major accounting fraud scandal. Can you believe that the market is not just a scam, but is equipped against a little man? It was a new scary experience.
That’s what these are. There is no major market decline from the thin air. Such a decline generally comes with horrifying real-world events.
When investing in the stock market, coupled with surprising things, you need to prepare to occasionally drop significantly. ”
Here’s what Warren Buffett wrote to him in February: Annual Berkshire Hathaway Shareholder Letter. He obviously hasn’t addressed what happened this month, but it’s still beneficial. Remember, don’t forget that Buffett raised his eyebrows at the end of 2024 Accumulate $334 billion in cash– Observers opined that he was worried about Trump’s presidency, wanted a safety net, or he wanted all that cash, so he could throw more into the market when the recession came.
“Even though some commentators now consider Berkshire’s extraordinary cash job, the majority of your money remains in the stock,” Buffett wrote to his shareholders. “That preference remains the same.”
What is this JL Collins wrote In November 2024, shortly after Trump was elected for his second term. Appreciation for him for summoning small Greek myths in his analysis.
“… For me, I feel like we can go down the road and see the important bear market. I love him, or Mr. Trump is a destructive force, and Mr. Mr. Mr. hates confusion.
So how long will it take to move to cash?
It’s not for me. My discipline remains the same. At least more than anything, we can’t predict Mr. Market. I remain fully invested.
If my bearish speculation proves correct, I will tie myself to the mast and continue investing as it passes in rage.
If Mr Market continues this historic bull run, I will be there with it.
This is a simple path to wealth. ”
Ramit Seti On April 8th, he wrote in his email newsletter:
“I’m not selling. This is a moment that ruined even disciplined investors. I’ve seen it on Reddit and Twitter. People who have been screaming “buying and holding” for years suddenly start panic after a few days and sell everything. everytime A devastating long-term decision.
If you are investing in the long term, and if you should, you don’t need to panic. I don’t sell anything. My portfolio is built for a long game, so I haven’t touched it for another 10, 20, 30 years. ”
Here’s what Jim Dahl thought during the Coronavian drop, in 2020:
“I discovered that what I write in advance doesn’t really matter. I’ve written about Bear Markets. I’ve been writing about Bear Markets. I pay your life to earn a salary on behavioural finances, why financial planning is necessary and how to write, the importance of maintaining a course, why it’s wise to reserve market time, choose individual stocks, or use actively managed mutual funds.
But it’s one big market slump, and it’s like a whole new blog no one has read before. The WCI Forum is somehow full of market timers. The WCI Facebook group is somehow full of stock pickers. I’m sure the Bogleheads forum will be different this time. . . What do you think it is? I’m still here. The message is still the same:
- Make as much money as you can while maintaining the balance in your life
- Save at least 20% of your total income for retirement
- Invest in diversified fixed asset allocations between stocks, bonds, and +/- real estate
- Keep costs low
- Don’t try to time the market
- Use a wide range of low-cost, diversified index funds
- Use tax-protected assets-protected investment accounts whenever possible
- Develop and follow written investment plans
- Maintain a long-term perspective
- Get good advice at a fair price
- Donate highly valued shares to charities in lieu of rebalancing, tax cuts, and cash. ”
So is it different this time? Yes, the decline in each market is always different. Perhaps the question is: do Is there something different? The answer at this point is still no. Hit yourself into the mast, stuff your ears with beeswax, and avoid hearing the siren’s call to the panic cell. And hopefully, we’re all fine in the end.
For more information, click here:
5 Money Activities to Better
Crystal Ball Prediction for 2025
This week’s money song
The majority of Americans will feel sorry for unsatisfied billionaires. But perhaps readers of this site can have a bit of sympathy for wealthy people who find sad. So when WCI columnist Adam Safdy suggested I listen to Kacey Musgraves’ 2024 song The lonely billionaire As for this week’s money song, I was all about it.
As Musgraves suggests, billionaires want to be loved and fulfilled. They don’t want to get stuck on their own on their private jets or gold watches.
When she sings,
“Who wants to be a lonely billionaire?
Beware of what you want, I always see it/money and diamonds, and shine/thing/thing that cannot buy you real happiness. ”
https://www.youtube.com/watch?v=hlrwqbjlcd8
The subject of money not being able to buy you love and happiness is a constant shorthand for music. But when I started playing this song it doesn’t interest me.
What really hit me about this song was that Musgraves didn’t play like the country singer who was croning about the wounded hearts of space cowboys and mommy. Instead, she also sampled rapper JID’s beats, reminding her of the most powerful Sado, who employs a powerful acoustic guitar. Maybe this type of music isn’t unusual for Musgraves (I’ve never heard of her before, so she doesn’t have any kind of gauge for her, but she said she makes country music and country music for those who aren’t).
But I know that this song surprised me in a good way.
“If you look at the records I made from day one, they’ve always been a huge patchwork quilt of so many different influences,” Musgraves said. Trendy. “I don’t think I can even say 100% of what my music is.”
When asked specifically about the lonely billionaire, she said, “There have definitely been a few examples I’ve seen in the industry, but the other day I saw a quote saying, “The ultimate wealth aligns with the flow of nature.” The ultimate wealth is already in you, do you know what I mean? ”
Alas, this song is much deeper than I originally believed. Man, Musgraves certainly sounds like a smooth operator when she sings, so I might listen to the rest of that deep well album.
For more information, click here:
All the money songs of the week released so far
This week’s reddit
For many readers, 1998 was probably not that long ago. But then let’s take a look at this grocery store receipt from 27 years ago. It’s like you’re seeing something from a completely different world.
You can see comments on that Reddit thread on how today’s grocery prices are compared to inflation benefits from 1998 until now. If you recreate today’s listing, you’ll see that it costs around $91. However, $30.82 in 1998 is worth $60.82 for $2025. So we pay more for today’s groceries than we did back then.
How worried are you about the latest stock market outcomes? Do you stay on the course? Do you think it’s different this time?
[EDITOR’S NOTE: For comments, complaints, suggestions, or plaudits, email Josh Katzowitz at [email protected]. ]
