The stock market turmoil sparked by the Trump administration’s tariffs is forcing US consumers and investors to reevaluate their personal finances and portfolios, per Bloomberg. Experts suggest making big purchases, like cars, now to avoid price hikes, while others advise waiting ahead of a possible recession. Financial advisers recommend diversifying portfolios and staying calm because, as a portfolio manager notes, “the world has changed.” One financial planner advises being careful with borrowing, as high interest rates could stretch your budget.
Most investors panic when the market crashes. But what if I told you that's when you should be buying?
📉 The VIX—also known as the Fear Index—measures market volatility. When it spikes above 70 or 80, fear is at its highest. Historically, that’s when the best investors make a fortune.
🔹 2008 Financial Crisis: VIX hit 70+ → Warren Buffett bought big.
🔹 2020 COVID Crash: VIX hit 80+ → Elon Musk backed up the truck on Tesla.
When fear is at its peak, opportunity is at its greatest. The next time the VIX surges, will you let fear control you, or will you buy like the pros?
I think we could all use some peace of mind…. this is a photo from hiking in Prescott about a month ago at Goldwater Lake
When 2008 happened, and the market was crashing, I had just transitioned from tech to being a financial planner
I continued to do my analysis while working for an investment firm on Long Island and continued to buy small positions in companies that we were researching, and that had a strong financial backing
Traditionall,y the best time to buy into financially stable companies is when they’re “on sale” to increase your appreciation over time
Historically, when the market is declining, it doesn’t impact every company the same way or every sector,r or even stocks and bonds the same way
So take a breath, and review what you own and why
At the same time in 2008, my $550,000 house, which we had purchased three years earlier, plummeted in value to $250,000
I didn’t sell my house and lock in a loss. I needed a place to live and rode out the downturn
Instead of going to cash and locking in losses, I continued to buy in at a lower cost basis based on the advice of my financial advisor for my positions and have held onto them since then…
They have cushioned me from this decline that is currently going on
This is not investment, tax, or legal advice
It’s just a reality check.
Markets are meant to go up and down, and they have been artificially held upwards due to suppressed interest rates since 2008
We each need to understand
- our own financial history
- how markets have reacted in the past and recovered
- our own cash flow needs
- our time horizon is around when we actually will need the money we have invested in the stock and bond market, and reevaluate how we are positioned
We need to understand both what is known as risk tolerance and risk capacity
If you’re stressing out, because retirement is very close, or maybe you’re an early investor and haven’t lived through 2008, work with a planner, coach, advisor to discover if you’re diversified and invested properly or maybe you’re taking on too much risk based on your current situation, goals, and needs
Maybe you have too much wealth in a concentrated position in your company stock? Maybe in options, ESPPs or RSU’s and now is a good time to reevaluate your buy and sell strategy on those positions going forward.
Consider stress testing your financial plan with software and modeling adverse conditions in the market to help you feel more comfortable and support you in making decisions on how to diversify your money to reduce your risk and stress
This is not investment, tax, or legal advice - just a suggestion from someone observing the panic from
Others around me
This is definitely a perception shift