It’s ugly out there.
Thursday was the worst day for US stocks since June 2020. Friday was worse, with the S&P 500 tumbling 6%. Stocks continue to sink today.
First, let’s put this selloff in context. Then, we’ll discuss what you as an investor should do about it.
The S&P 500 plunged 11% Thursday–Friday. It was the fifth-biggest two-day decline since 1950.
What does this say to you? To me, it says two things.
One, we really are living through a “who’s who” of fast market crashes. This isn’t just the financial media exaggerating.
Two, invest for the long term and stay the course. I know it’s not what people want to hear in times like this. But picture yourself in 2026 or 2028. You’ll be glad you held onto the great businesses in your portfolio.
It’s wild times right now, but the most important thing to do is tune out the noise as much as you can. Don’t pay attention to “hot takes” from social media gurus or headlines from mainstream financial reporters. It just confuses otherwise smart people into doing dumb things with their money.
You don’t need to think back far, just to the tech selloff of 2022. Tons of folks cut amazing stocks like Nvidia (NVDA) from their portfolios because they believed the headlines that tech was dead, artificial intelligence (AI) was a fad, all that nonsense. NVDA is up 1,000% since then. Many other great tech/AI names are up 100%, 200%, 300%. So many investors got left behind because they were scared by doomsdayers who sounded smart.
I think what made investors panic is they thought big tariffs would be short-lived and mostly used as a threat for negotiating. Now, they’re realizing that big tariffs could be in place for a long time and they’re trying to get their heads around the effects of that. But the principles don’t change. I’ve seen countless selloffs like this over the years for all kinds of reasons and every single one has proven to be a long-term buying opportunity… and we know that because stocks have always gone on to make new highs at some point in the future… and then new highs again, and again, and again. And that’s what’s going to happen here.
If you’re nervous, I get it. This is a serious selloff. But stick to the plan. Don’t get caught up in the fear. And get your watchlist ready. Some great bargains are forming out there.
Busy And Useful 