Investing

Market Drops: What Should You Actually Do?

Market declines feel different from what the data says about them. The right response is almost always the opposite of the instinctive one.

Investing

Market Drops: What Should You Actually Do?

The question every investor faces. With a framework that survives the emotion.

Market declines feel different from what the data says about them. The right response is almost always the opposite of the instinctive one.

100%of major market declines in history have eventually recovered — and reached new highs. The investors who benefited were the ones still present.

The Situation

Why Declines Feel Different This Time

Every market decline feels uniquely threatening in real time. The news is alarming, the cause feels novel, and the uncertainty seems unprecedented. This feeling is the consistent experience across every previous decline — which is precisely why having a pre-made response plan is more valuable than reacting to the specific circumstances.

Every decline has felt like this time is different . Every recovery has felt like of course it recovered.
— Worthune Decision Framework

You've made changes to your investment allocation during a previous market decline
You find yourself consuming more financial news during periods of market volatility
You're unsure what action, if any, you should take when your portfolio drops significantly

About This FinBook

100% of major market declines in history have eventually recovered. Learn the framework for responding to market drops — before, during, and after the decline.

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