What If the Market Drops 50% Again? Staying the Course
One thing I think about sometimes is what happens if we see another major market crash, something like a 50% decline similar to 2008-2009 or the dot-com crash.
It’s easy to say “stay the course” when markets are rising, but it’s much harder when your portfolio suddenly gets cut in half.
Historically, this has happened multiple times:
- The Great Depression (1929 -1932) the U.S. market fell nearly 90%.
- The Dot-Com Crash (2000 -2002) the S&P 500 dropped about 49%.
- The Global Financial Crisis (2007-2009) the S&P 500 fell about 57%.
- The 1973-1974 Bear Market, the S&P 500 declined roughly 48% during the inflation and oil crisis.
- The 1937-1938 Recession Crash, the market dropped about 54% during a severe recession.
At some point, another major downturn will happen. The exact timing is unknowable, but large drawdowns are a normal part of market history.
For investors who are not near retirement and who have a healthy emergency fund, these periods are actually when the Boglehead philosophy probably matters most.
If you’re still working and continuing to invest, a major downturn can mean:
- Buying shares at a discount. When the market falls, your regular contributions buy more shares for the same amount of money. Over time this increases your total ownership of the market.
- Lower future valuations. After major declines, metrics like P/E ratios tend to fall. Historically, buying when valuations are lower has led to higher expected long-term returns from that point forward.
- Rebalancing opportunities. If you hold bonds or other defensive assets, market drops allow you to rebalance into equities when stocks are cheaper.
- Dividend reinvestment buys more shares. If you reinvest dividends during downturns, those payments also purchase more shares at lower prices, accelerating compounding.
The hardest part is the psychology. Watching a portfolio drop 30-50% is probably brutal, even if you know intellectually that markets recover over time.
For me, having a large solid emergency fund and stable income makes a huge difference. It means I don’t need to sell investments during a downturn and can continue investing through it.
I’m curious how others here think about preparing for a scenario like that.
For those who experienced 2000 or 2008, what helped you stay the course when the market dropped so dramatically?
Comments
formar42 · 2026-03-14 · 299 points
I encourage you to look at the day-to-day trends during 2000 and 2008. We always talk about how big the drop is but we never talk about how volatile that period was. There was no single day. It took years of chipping away up and down. It's actually not obvious in the moment that you're dropping so fast; it's only hindsight.
CuteLogan308 · 2026-03-14 · 89 points
Exactly this. Also it is very unpredictable how long the low will be. I find it hard to imagine staying Hopeful when the market doesn't recover after 3 years. Historical data tells you it will, but we just don't know.
jfwelll · 2026-03-14 · 13 points
Everyone in investing subs are expecting itll be like april 25 and that we can print our way out forever.
Some people will learn the hard way
Future-looker1996 · 2026-03-14 · 540 points
Experienced both, never sold out of fear. Was pretty certain I’d retire this year, now, maybe not. In preparation, now portfolio 50-50 ish, so will ride it out, one more year of working won’t be fun but have seen videos/case studies showing how that can make a huge difference.
HokieHomeowner · 2026-03-14 · 103 points
I'm more heavy in stocks but large cash position, similar timeline, retirement this year maybe but pondering holding out a bit longer to ride out whatever this is while still drawing a salary, provided the fates allow my continued employment.
I'm concerned about potential oil shocks along with bear market if events rhyme with the 1970s. I love Disco but not the rest of that decade. 🙃
liverpoolFCnut · 2026-03-14 · 51 points
I held on to my enron , bear stearns and lehman brothers stock to the bitter end! hell yeah!
FourScoreAndSept · 2026-03-14 · 19 points
Iomega baby.
monkypanda34 · 2026-03-14 · 22 points
Wow, that is a name I haven't heard in a long time. Zip drives were pretty cool back in the day
ditchdiggergirl · 2026-03-14 · 14 points
Imagine the next generation saying that about nvidia.
wordyplayer · 2026-03-14 · 6 points
US Robotics
monkypanda34 · 2026-03-14 · 10 points
Man, I remember the slow crawl from 2400 baud when I started using computers to get on BBS's to play Legend of the Red Dragon, Usurper, BRE and SRE. Upgrading from 9600, then 14.4, 19.2, 28.8 sportster, 33.6, and finally 56K allowed downloading mp3s from limewire in a timely fashion. I bought a lot of modems from US Robotics.
KungFoolMaster · 2026-03-14 · 48 points
What do you mean your portfolio is 50-50? Sorry, but I’m new here.
MysteriousChip7375 · 2026-03-14 · 125 points
I think 50-50 is 50% of his portfolio is in equities and the other 50% is in bonds
Simple_Purple_4600 · 2026-03-14 · 23 points
technically 50 percent stocks and 50 percent fixed income which could be some mix of bonds, CDs, and cash
jdirte42069 · 2026-03-14 · 515 points
All time low, buy, all time high, still buy
AJs_Sandshrew · 2026-03-14 · 63 points
Bear market? Buy. Bull Market? Buy. Recession? Buy. Stagflation? Believe it or not, still buy.
SploogyMcJizzmaster · 2026-03-14 · 12 points
Fear? That’s the other guy’s problem!
jcb193 · 2026-03-14 · 10 points
Usually a market drop of 50% has some effect of people’s jobs, expenses and investible income.
FalconArrow77 · 2026-03-14 · 136 points
Right, but that’s easier said than done when the numbers get bigger. If you had 600k invested and watched it drop to 300k, that’s psychologically very hard for most people. That’s actually the position I’m in and mentally preparing for. But the plan is the same either way, whether it’s 600k dropping to 300k or 50k dropping to 25k. Stay the course and keep buying
HobbitFeet_23 · 2026-03-14 · 93 points
But what would the alternative be? Sell at a loss? Why would you do it unless you really needed to?
Sl1z · 2026-03-14 · 83 points
Some people will pull back on investing to build up a bigger cash emergency fund because they’re worried about losing their job + not being able to find a new one quickly when unemployment rates go up/economy is doing poorly. When a bunch of people you know are losing their jobs and unemployed for months, suddenly your 6 month emergency fund doesn’t look so great anymore.
Not saying it’s the right thing to do, but that’s the alternative.
MeeseShoop · 2026-03-14 · 21 points
It is probably the right thing to do. In a recession environment 6 months of reserves simply isn’t enough.
lakorai · 2026-03-14 · 9 points
1 year minimum now.
I have had several people I know where it took over 1 year to find a job and they exhausted their unemployment.
Specialist-Path-4750 · 2026-03-14 · 141 points
It helps if you don't look at your investments frequently. If you don't know exactly where you stand, you are less likely to panic. :)
Wobblycogs · 2026-03-14 · 61 points
I do the exact opposite, I look at it nearly every day. I've desensitised myself to market movements. I feel I've developed a better understanding of why it's bad to trade frequently because I clearly can't predict day to day, week to week, or even month to month. All I can say is that over the long term, it generally goes up.
Impossible_Way7017 · 2026-03-14 · 31 points
Some people are retired and their investments have become their livelihood
nefrina · 2026-03-14 · 16 points
they are too equity heavy if it impacts your livelihood that much in retirement, shift more to cash/bonds etc.
for the rest of us, a market reset will be life changing assuming there is (another) recovery after.
trukkija · 2026-03-14 · 6 points
I know this is a bit close to doomsday predictions but realistically what do you think could even cause another recovery not happening? WW3 wouldn't even be enough for that, unless it would involve a full out nuke war.
I guess it would have to be a full on doomsday event for that to happen, in which case it really doesn't matter where you keep your money anyway?
chrisreverb · 2026-03-14 · 5 points
There is a reason tightrope walkers keep their eyes on the horizon.
NatureBoyJ1 · 2026-03-14 · 15 points
When do you need the money? The closer the time to withdraw gets the more you shift to stable assets - bonds, CDs, etc. 60/40 is the typical retirement allocation. That should be enough bonds to weather a market drop, but still provide stocks for faster growth when the market recovers.
ditchdiggergirl · 2026-03-14 · 6 points
US treasuries have been the global safe harbor for decades due to our uniquely strong position and reliable reputation. That is changing. If global confidence in our economic stability declines, our bonds will feel it.
_KeenObserver · 2026-03-14 · 18 points
Just to add on to your point, what makes it difficult for people to stay the course isn’t simply the mathematics of a falling portfolio. It is the atmosphere surrounding the fall.
Major market downturns rarely arrive in isolation. They tend to unfold amid a steady drumbeat of troubling news. Banks under strain, government corruption, companies announcing layoffs, economists warning of recession, and people questioning whether their personal situation is stable anymore. In that environment, investors are not merely observing a chart moving downward. They are living within the same uncertainty the market is reacting to. People begin to wonder whether their job will still be there in six months, whether their business will survive the year, or whether a broader economic shift is underway. The decline in a portfolio becomes intertwined with worries about mortgages, tuition, and the security of one’s family.
That is where panic is often born. It is not simply the sight of numbers falling, but the sense of their personal (and family) stability eroding at the same moment those numbers are declining. And when downturns stretch on, when markets stagnate for years rather than months, people begin to lose hope. What begins as a sharp shock can slowly become something heavier; the feeling that perhaps the previous era of growth has passed and that recovery may take far longer than expected.
Rich-Contribution-84 · 2026-03-14 · 8 points
It’s kind of hard for a lot of people yes. But if you’ve been doing this as long as most of us have, we’ve been there and done that.
It’s why we have bonds or why we start laying them on as we near retirement.
jim-i-am · 2026-03-14 · 8 points
If you need cash soon, why are you fully in stocks?
Boys, we are down a bit but ZOOM OUT. Last few years have treated us great. This happens. It’s time to buy.
mrshickadance412 · 2026-03-14 · 17 points
Sounds like you know what to do and just need help dealing with it…Look at cognitive behavioral therapy techniques like decatastrophising, cognitive restricting, etc. or, maybe just some stoicism tricks as well.
That…and go more international. There’s a relatively higher percentage chance the US fails in our lifetime. That, and somebody else will pick up the slack in all the areas the US cut and will leave on the table.
miraculum_one · 2026-03-14 · 10 points
If you fully internalize the principles of long-term broad diversification then you look at a big drop as just another day where the short-term movement has no bearing on your long-term results.
VeryStab1eGenius · 2026-03-14 · 5 points
What is the alternative? Sell and lock in the loss.
Past-Option2702 · 2026-03-14 · 148 points
Probably the hardest part will be the job loss. Public companies don’t drop 50% without serious reductions in headcount.
Many business owners can tell you what happened in 08/09. It was really hard to let people go. Hardest thing I’ve ever done in business, by far.
FlimsyPriority751 · 2026-03-14 · 49 points
Yeah I think OP is assuming they will have a steady job and the emergency fund won't be needed. Well…if we hit difficult economic times and the market drops severely it ain't in a vacuum. Job loss is way more likely and the need to dip into emergency funds and possibly investments becomes much more likely.
GanacheImportant8186 · 2026-03-14 · 83 points
If you're working, ignore and keeping investing.
If you've retired or nearly retired, do some meditation, use your bond and cash allocation in the short to medium term and revisit your Monte Carlos to prove to yourself it will all be ok long term (assuming you had enough to begin with and structured it adequately). Realistically, if I was early in retirement I'd also be cutting spending a little and maybe even doing some part time or low stress work to supplement income for a few years, even if it is just something to help emotionally.
Basically you need to psychologically and practically prepare for this exact situation before you can say you're ready to retire. If you aren't mentally ready then you aren't ready.
Fit-Actuator4194 · 2026-03-14 · 7 points
This and to your point have an adequate emergency fund, especially if you’re in a more volatile industry. The instant access to data and constantly checking your phone is driving people insane.
ColForbinClimbs · 2026-03-14 · 205 points
At this point I think it’s more likely, based on current geopolitical decisions, that we trade sideways for 5 years.
Already-Price-Tin · 2026-03-14 · 117 points
I'm always in these threads talking about people talking a big game about 25+% drops in a year, but the true fear that most ordinary investors should have is that stocks trade sideways for 15 or more years (see S&P movement between 1999 and 2013, where the problem wasn't the big dot com crash and the great recession crash, but that the timing of those crashes basically meant 15 years before zooming out could show growth again).
If I'm an ordinary person accumulating 401(k) balances between the ages of 25 and 60, it would be a disaster for me if my portfolio barely grows between the ages of 40 and 60. The size of the swings up and down in the meantime are secondary to the fact that the 20-year span itself underperforms the historical average.
FourScoreAndSept · 2026-03-14 · 49 points
I was youngish (30’s) in 2008, but I’ll never forget my neighbor young retirees that were wiped out at the worst possible time (and only 8 years after the previous crush). Tl;dr, now that I’m a near retiree, I’m much more conservative with my allocations, particularly with unsteady geopolitics and inflated AI valuations/debt
Beautiful_Pepper415 · 2026-03-14 · 18 points
You will still be fine reinvesting dividends
My uncle did fine in Japan's lost decade reinvesting dividends
Already-Price-Tin · 2026-03-14 · 11 points
Sure, assuming that corporations are still paying dividends. How much of the S&P500's value (which is weighted towards market cap, such that 7 companies represent 1/3 of the value and 493 companies represent the rest) is in dividend-paying companies?
If there's a tech bloodbath I don't think a few consumer conglomerates are going to make up for it.
User-no-relation · 2026-03-14 · 24 points
You are way way catastrophizing. Including dividends, the S&P 500 grew by approximately 111% from 1999 through 2013, representing a compound annual growth rate (CAGR) of about 5.1%.
Already-Price-Tin · 2026-03-14 · 21 points
If you're gonna include dividends you should include inflation as well. This calculator shows that a January 1999 to December 2013 investment returned about 2% annually after adjusting for inflation and dividends.
And the point is that if it took 14 years at one point within my adult/investing lifetime, who's to say it won't take 15, 20, or even 25+ years to revert to historical expectations? I'm merely pointing out the things we know to be possible because they've already happened. There are things that are possible that haven't already happened.
People talk about economic growth as if it's purely a question of business cycles. Business cycles are part of it, but so are geopolitics. If we're leaving the relative peace and prosperity of the post-WWII era, we should account for that kind of risk in our investment decisions as well.
For me, if I end up earning a 2% annualized real return for the remainder of my accumulation phase, I'm still gonna be OK, but it will definitely look different from what I actually expected when I first started investing. And I'd expect a lot of people who aren't as rich as I am would actively struggle in that environment, despite "doing the right thing" with their retirement decisions.
Competitive-Teach675 · 2026-03-14 · 6 points
Well, I dunno…
I started accumulating my 401(k) during the lost decade. I can remember distinctly thinking, "This investing thing is BS, I'm at about cost basis after a decade."
The thing is, looking back, the money I put in during the lost decade is the biggest driving force behind my retirement today.
So, if things went sideways for another 10 to 15 years, it could set me up for really nice returns at the beginning of my retirement, which is basically like "winning the lottery" in terms of investing. Plus, I get the next 10 to 15 years for another "accumulation phase".
palebluedot365 · 2026-03-14 · 76 points
This is my suspicion. And in a way sideways is worse because you don’t get the “on sale” benefit.
SecretPantyWorshiper · 2026-03-14 · 18 points
What does trading sideways mean?
Fine-Literature-8031 · 2026-03-14 · 39 points
Lots of volatility but no large trends either up or down. I.E the graph goes sideways not up or down.
PlanteraWine · 2026-03-14 · 11 points
There are no returns, the chart is a sideways line.
Fallenmuskrat · 2026-03-14 · 7 points
Dips and rises leading to no or not much change in price in the end
soccer29801830 · 2026-03-14 · 324 points
So many circlejerking posts lately in “staying the course” when we’re down 3% on the year
HatWithAChat · 2026-03-14 · 41 points
This specific post seems pretty relaxed in my opinion. OP is talking about how to think if this happens and not saying we’re seeing it happen right now. Planning for this scenario is a smart thing to do so that you can feel confident and relaxed if it happens.
no_plastic_bags · 2026-03-14 · 30 points
Like learning Stop Drop & Roll in elementary school. None of the kids were even on fire!
cabef · 2026-03-14 · 18 points
Outstanding :)
And exactly. You rehearse something endlessly in peacetime so it’s instinctive second nature when you need to do it under stress.
BitcoinMD · 2026-03-14 · 55 points
When I started investing the Dow was at $3k so these posts are adorable
bradatlarge · 2026-03-14 · 21 points
Pam is that you?
Specialist-Path-4750 · 2026-03-14 · 21 points
That's nothing in the overall scheme of things.
mneely1098 · 2026-03-14 · 6 points
Right. I remember when the first downturn happened last year and a lot of posts of panic selling/this is the start of the recession. It’s always better to just remember that your investment horizon is long. There’s nothing to worry about since you’re not retiring in the next 30 plus years. Stay the course. Investing is very boring but our human psychology is what makes a simple process complicated.
SoberEnAfrique · 2026-03-14 · 36 points
Idk why we need a slew of "Omg what do I do when market red?" posts every time something happens. Is it genuine panic? Karma farming? Like the economy has been growing quarterly, no evidence of recession, but the market goes down instead of up for a single month and you'd think the world is ending
Crazy, makes me want to unsub since this community is feeling more like therapy for new investors than anything else
nefrina · 2026-03-14 · 11 points
a large chunk of the reddit demographic has never lived through a real multi-year downturn. ukraine, covid & tariffs are all they have experienced while having skin in the game.
raiodocachopo · 2026-03-14 · 6 points
Most dudes here 14 year old when covid happened. 6 months is a LOT for these guys. Instant gratification ftw
SoberEnAfrique · 2026-03-14 · 27 points
The point of Boglehead is to do the same things no matter what. 50% down, 50% up, buy and hold low cost funds that capture the entire market
xeric · 2026-03-14 · 18 points
This is why reducing volatility matters. Just calling out that a globally diversified equity/bond 60/40 portfolio only dropped at most 25% in the 2000s. Worst years were 50% drop for Great Depression and 40% drop in the 70s, both much less severe than equities.
https://www.morningstar.com/economy/6040-portfolio-150-year-markets-stress-test
justacpa · 2026-03-14 · 15 points
I was in my 30's during the dot com crash and Great Recession. I managed the panic by simply not looking at my portfolio or the stock market news. I looked at my portfolio maybe 4x a year during those times. I had already implemented a sound investment strategy and didn't change it at all. Just stayed the course. Didn't sell anything, only exchanged for rebalancing purposes as part of the regular monitoring. I was so detached from it that I didn't even know until decades later the magnitude of the market declines. I'm mid 50's, single, never married and have investable assets over $3 million strictly from accounting/auditing jobs. So, I'd say that strategy worked pretty well.
UpgradeHome · 2026-03-14 · 53 points
Don't bother analyzing all this. Just enjoy your Saturday morning coffee and keep throwing money into the market. All will be fine.
Miss_Chanandler_Bond · 2026-03-14 · 25 points
I think it's time for you to meet Bob, the world's worst market timer:
https://prosperion.us/commentary/meet-bob-worlds-worst-market-timer/
But yes, you have to have a good emergency fund so that you CAN wait it out if shit hits the fan.
Simple_Purple_4600 · 2026-03-14 · 33 points
The best time to buy is now and the best time to sell is never. The second-best time to sell is when you need the money.
Psychology isn't the "hardest" part, it's the only part.
Rich-Contribution-84 · 2026-03-14 · 10 points
If it crashes 50% you keep doing what you’re doing when it’s at all time highs. It almost certainly will crash by 50% or more at some point. It always does. Those who pull out at that time will lose their ass.
Certain-Ad-5298 · 2026-03-14 · 9 points
Has only dropped by 50% four times since 1871.
Rich-Contribution-84 · 2026-03-14 · 9 points
And it’ll almost certainly happen again.
Look at what the preceding decades did after each of those 4 dives.
And I don’t think the OP necessarily meant 50% literally. It’ll have some big periods where it tanks.
jakedonn · 2026-03-14 · 18 points
What else do I do, shove it in my mattress? Yeah man, I’m just buying the same stuff I always have. Don’t know another way.
Asgen · 2026-03-14 · 9 points
Index funds have right or wrong socialized the market. We are unlikely to get such large drawdowns because the reality is over 50% of the money coming into the market is index funds now that are on autopilot.
The only scenario I see being a problem is mass layoffs tied to AI which will cause people to have to sell and draw down stock portfolios/401ks to sustain lifestyles.
CreativeLet5355 · 2026-03-14 · 8 points
My entire investing philosophy is based upon a substantial drop followed by a period of lackluster returns and high inflation.
So if that does happen I can point at it and go “I acted according to that probability. “
WackyBeachJustice · 2026-03-14 · 8 points
If you’re still working
stable income makes a huge difference
As someone who worked and invested through 08, this is precisely the thing that either makes or completely breaks it. And unfortunately you have very little say in this regard.
Same_Cut1196 · 2026-03-14 · 7 points
If you are retired, I’d consider having a more defensive position at all times. Depending on your risk capacity, it is likely more critical for some than others.
If you are still working, do nothing and just continue to buy. Think about it like you are riding your first roller coaster. That first drop is terrifying, but by the end of the ride you realize that it was just part of the experience. Once you’ve ridden it a few times, you just deal with it.
newtownkid · 2026-03-14 · 7 points
I have shifted from all equity into a 70/30 blend etf and am increasing how much I want as an emergency fund.
I’m not really timing the market, I just think my risk tolerance has changed as I’ve gotten older and accrued more.
shozzlez · 2026-03-14 · 7 points
If I see the markets are down I don’t look at my investments. It’s that simple. And I think it would serve most people well.
RevolutionaryLaw8854 · 2026-03-14 · 7 points
The stock market is a device for transferring money from the active to the patient - Warren Buffett
Be patient.
Adorable-Storm-3143 · 2026-03-14 · 25 points
I got out of college in 1994 and started investing, and reading about Warren Buffet. My portfolio net worth is very high compared to others in my demographic. I’ve been through a few of these market corrections and they all have been different and difficult. But. They all ended. All. Of. Them.
CuteLogan308 · 2026-03-14 · 6 points
If you are retired, then it is different. While you are making income, you can ride it through.
Due_Anxiety_8926 · 2026-03-14 · 13 points
Don't look!
CurveNew5257 · 2026-03-14 · 12 points
I never really understood the psychology of panic selling. Like if the market goes down 50% and you’re scared to loose money so you sell at a 50% loss just to lock in the very thing you panicked about? I don’t know I get trying to time the market and being stupid, but panic selling just doesn’t make sense
cabef · 2026-03-14 · 23 points
It sure doesn’t. But the situation is never “it drops 50% in one day, and everyone knows that’s the floor and it will go up from there”. The temptation is, it drops 20% and you think “if it’s on its way to 50%, maybe I’ll get out now and get back in when it hits bottom”. But nobody knows when the bottom is - and the bottom might be 21% and shoot up overnight. (See: March 2020)
For myself, I’m trying to inoculate myself by picturing my NW number as half what it is now and thinking “that’s fine, it’s all part of the plan”. It’s not easy.
LividLab7 · 2026-03-14 · 6 points
Not sure why it matters if your 401k and investment portfolio isn’t meant to be used for cash/purchases anytime soon. That’s what income and tbills/HYSA are for
Then_Manufacturer723 · 2026-03-14 · 6 points
Personally I prepared for it best I could. I built a cash/bond defense bucket to last us through 4 years of spending to where we don’t have to sell any equities
watch-nerd · 2026-03-14 · 6 points
I experienced both 2000 and 2008.
TBH, the initial declines wasn't the hardest part.
It was the decade-long sideways grind that was more demoralizing.
Of course, I kept contributing and buying all the way through, which served me well in the long run.
But I don't know if the current "buy the dip" generation is prepared to keep buying and buying in a flat market that last years and years going nowhere.
Terron1965 · 2026-03-14 · 6 points
No, sell all your equities and buy tulip bulbs
mydamnusername1234 · 2026-03-14 · 6 points
Keeping your job is very important. Unemployment in the US hit 11% in 2009. It was terrifying and DCA was not really an option when you didn’t have a paycheck. Lots! of my colleagues lost jobs then and even when they finally found new jobs, and it often took six months or more, they were paid much less. Then people start drawing from their 401ks, stop spending, it’s a vicious spiral.
SouthEast1980 · 2026-03-14 · 20 points
When the market is good, buy. When the market is bad, buy even more.
paq12x · 2026-03-14 · 5 points
For those who experienced 2000 or 2008, what helped you stay the course when the market dropped so dramatically?
I panicked and sold during the dot-com bust. That helped me stay the course during the Financial Crisis of 2008 and the COVID drop.
fason123 · 2026-03-14 · 5 points
Remember, the Japanese stock market only just recovered in 2026 from 1989 🤡
Emily4571962 · 2026-03-14 · 5 points
My 401k plummeted in the dotcom bust, the GFC and, to a lesser extent, during Covid. The first two weren’t even a blip on my radar — I had a very secure job and retirement wasn’t something I was particularly focused on yet. When Covid hit, retirement was much more seriously on my mind, but in the middle of a global pandemic I was mostly grateful that no one I loved got desperately ill and that my company and job were secure and switching to working remotely was seamless. I felt lucky, to tell the truth, and that my finances would eventually sort themselves out if I just let it ride.
And now I’m retired. It feels a lot different. I try to remind myself that I’m up almost 50% since the day I quit, I have a large chunk of cash to draw on (I was always overly paranoid about SORR), and the market has never not recovered with time. I do worry that the administration’s willingness to just burn down the systems that have served the US extraordinarily well for generations presents a new type of threat, but there’s not a damn thing I can do about it. Also I’m fairly fluent in Spanish and would be pretty comfortable moving to Mexico and cutting my cost of living in half if necessary.
Stay the course.
FellowHuman_823 · 2026-03-14 · 13 points
Not to be a dink but points 1 and 3 are kind of the same, no?
[deleted] · 2026-03-14 · 10 points
lmb123454321 · 2026-03-14 · 12 points
I have theory about why large crashes won’t happen as often. 401k auto investing via indexes has been exploding over the last 10 years or so. That means that new money is automatically put into the market every day given the large number of employers and varying paydays. As such, I think it acts as a buffer to the S & P 500 much more than we realize. I think however, it also can be a catalyst for a crash if we ever had a significant reduction in overall employment, given as it would also reduce the money going into indexes every day. Anyone have any thoughts?
