Can anyone give me any advice on how to best deal with market downturns like these? I’m a fairly new investor and I haven’t experienced too many downturns other than maybe liberation day. I’m going to continue to DCA into ETFs and good companies that I believe in, but man does it suck seeing your account down thousands in times like these.
I’m in my 20s and plan to invest for the future. Any advice is appreciated
Any tips on dealing with downturns in the market?
byu/SelfMastery__ instocks
Posted by SelfMastery__
39 Comments
Are you an investor? If so, basically just what you said. DCA into holdings you trust and have conviction in, and don’t stop during the downturns. Staying disciplined is the most important part.
The downturns really tell you how exposed your portfolio is, so use them as a barometer.
And FYI, what we’re dealing with right now is hardly even a “downturn”, so make sure you’re always positioned for shit to hit the fan. See how things turn this time, and maybe consider that when planning out your long-term portfolio.
Don’t log in to your investment account. Save enough money to not have to sell at a bad time.
That’s really about it
Can I ask you why you’re so broken up about the fact VT closed $0.07 higher than a month ago, and even VOO which has done worse is only down 1.8% in a month?
Has the entire Reddit forgotten that we had a dip about 80% of this size **5 weeks ago**? And now are up 2-3%?
You need to be REALLY confident in your individual picks.
Also, if you’re in your 20s, dips like these are the best thing you can ask for. You are at a point where you want the market to go down early so you can enjoy the benefits of compounding.
Look at the stock market less, enjoy your life, and thank yourself later
It’s just part of the game. As you stay invested longer you’ll become more and more desensitized to it
Unless you’re in super crap, being down thousands means you have tens of thousands invested in most cases. That’s a position many would kill for.
Just DCA and ignore the noise, 10-20 and especially 30 years from now you’ll be happy you did
It’s funny because when just looking at large cap index this is nothing, it’s just trading within a tight range near ath levels.
Maybe you shouldn’t be investing in stocks if you’re asking random strangers on the internet on how to deal with downturns.
log off, go outside, don’t sell anything (unless you have high risk shitters that have no future technological edge).
The worst is likely over, or it won’t be, but it will end. One thing you can be sure about is that selling now you are locking in your loss.
>Can anyone give me any advice on how to best deal with market downturns like these?
Don’t lever up to the tits like a moron.
It’s a 3% drop in the S&P 500. It’s fine.
Start that workout program you’ve been putting off
learn from them this time so you can surf from them next time
yeah buy some more lol
Be patient. Embrace the suck.
I’ve been through 2000, 2008. If something looks cheap it isn’t.
Amazon fell to $6 in 2001. Apple was $8.
Cisco just recently surpassed its 2000 high. 25 years later.
Citi fell from $50 to $1 in 2008. I margined at $3 and lost everything.
Bong hits and Scooby doo.
>Any tips on dealing with downturns in the market?
You just need to know that like your life, the market has also its ups and downs.
How much do you have invested? If you’re in your 20’s and it’s not a ton of money, don’t worry too much about it. You’ll make it back. Either in stocks or working. After a while you’ll become numb to it. I’m down 18% just this week. If it’s not junk stocks, it will probably come back.
Just close the app and read a book or something. If you’re playing long, then who cares?
Yeah this isnt really much of a correction. If this is making you think of selling, you have way too much in equities or are way too concentrated in individual stocks/sectors. Do the math on being down 20-30% and how that would feel or if you’d be tempted to sell because you think its going down another 30.. its about finding the equity percentage that allows you to sleep well and not sell. Once you find that number, the rest of your investment pot goes into bonds and cash and you never sell in downturns.
You’re buying into a company, has the fundamentals changed? No
Macro events are causing the dips, like April 2025. The market recovered soon after
This is market manipulation. The smart people are buying from people who are panicking and selling
You are blessed with money to buy the dip. Most of us are out of cash.
It’s completely unavoidable so there is nothing to do but stick to your plan and stop obsessing over daily/weekly/monthly noise that is actually just giving you an even better deal helping you compound gains faster. That is not something to be unhappy about.
Stocks go up, stocks go down, there are down days, weeks, months and sometimes even down years and down MULTIPLE years. That is life.
Unless you are retiring in the next couple years you should be celebrating these times. If you cannot stomach the movements then you should strongly reconsider what you are doing until you can.
This is what we call a sector bear market for SAS companies.
This is a market rotation into value stocks. So while some are in a “downturn”, others are not. When it’s BAD, you and the whole world will know it. This is nothing. So if you can’t take this, I suggest you buy VOO on a weekly schedule and just keep buying without looking at the news until you reach retirement age.
Spxs
It will shoot up just as fast as it came down. The market is a giant machine that is constantly trying to shake you out.
Buy more than the weekly average DCA.
Zoom out
Buy more
Wait.
You are young, you should welcome dips. DCA is the way at your age. It works. Compound interest will be your best friend down the road. I am a big believer in r/bogleheads. You should check it out and see if it for you.
“The market is like the weather. If you don’t like the current conditions, all you have to do is wait.”
Diversify broadly across sectors and geographies. Buy stocks that you would be happy to hold for a decade if the market was to close.
Wait until the market really goes down, then buy the stocks of good companies. You need at least a 20% decline.
Theoretically, you could have 100 stocks right now. (Don’t).
Based on this week so far, almost all will be down.
If you had 10,000 to invest, now is the time.
Make a conviction. If you want to invest in individual stock or stocks, do research. Metrics, earnings, history.
Try to diversify.
Don’t go all in on non profitable companies.
I survived 2022- just keep fucking buying
Brk b. Been buying a bit.
Hedge
Living through downturns will help you appreciate the virtues of prudent asset allocation and risk management.
Thoughts:
1. Cash is very useful asset class. Ditto for cash-equivalent investments (t-bills, money market funds etc).
2. Holding assets that are not correlated with stocks and bonds (such as gold and cash) reduces the volatility of your portfolio,.
3. Having fixed allocation to different asset classes simplifies your investment decisions, and will force you to buy low and sell high when you have to rebalance.
As long as you have no leverage or high beta stocks, you’d probably be fine continuIng to DCA