Why you shouldn’t panic during a market drop

By the Numbers: Stock Market Crashes and the Power of Staying Invested

Tariffs, headlines, and Twitter threads—oh my! It seems like everyone (and their mother) is talking about the stock market these days. There's a whisper of panic in the air, a sense that something big might be brewing. But before we jump ship or hide our portfolios under the mattress, let’s take a deep breath. We’ve been here before—and history has a few reassuring stories to tell.

Because when it comes to the stock market, crashes aren’t the end. They’re part of the journey.

The Crash Chronicles

Let’s rewind a bit and look at some of the biggest downturns in recent memory. Each one felt catastrophic at the time, but all were followed by recoveries. Here’s what the numbers tell us:

2000 to 2013: The Long Slog

This 13-year stretch packed a double punch: first, the dot-com bubble burst in the early 2000s, followed by the Great Recession just a few years later. At its worst, the market dropped a gut-wrenching 54%—one of the steepest falls in more than a century, according to Morningstar. But the story doesn’t end there. With steady government support, rock-bottom interest rates, and a slow (but sure) economic rebound, the markets fully recovered by 2013. Lesson? Patience pays.

2020: The Pandemic Panic

If you had money in the market in March 2020, you remember the stomach drop. In a matter of weeks, the market plummeted 19.6% as COVID-19 upended the world. But the comeback was just as shocking—within four months, markets had clawed back to pre-pandemic levels. Fastest bear market recovery ever? Pretty much.

The Secret of Big Market Days

Here’s something most investors don’t realize: 78% of the market’s best days happen during bear markets or just as a bull market begins. That stat comes courtesy of Hartford Funds, and it’s a powerful reminder that trying to time the market can cost you—big time.

Miss just the 10 best days over the last 30 years, and your returns would be cut in half. Yikes. This is why staying the course, even when the news feels scary, is one of the smartest financial moves you can make.

The Long Game Wins

And it’s not just about avoiding losses—it’s about outpacing inflation too.

A hundred dollars in March 1915 would be worth $3,230.29 in March 2025, according to the Bureau of Labor Statistics’ inflation calculator. That’s the magic of time and compounding. Even in the face of downturns, markets (and money) grow over the long term.

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Market crashes aren’t fun—but they’re not new. They happen, they hurt, and they eventually heal. History shows that staying invested through the turbulence leads to long-term growth and stronger returns.

So, when the headlines start screaming, take a breath. Remember the data. And repeat after us:

We don’t panic. We plan. We stay invested.