If the market crashes—suddenly and without warning, like a bolt of lightning—it raises a tough question: do I need to act immediately, or is it smarter to stay put and wait for the storm to pass?
If that kind of crash were to happen, I wouldn’t panic-sell my stocks or ETFs just because they were in the red. Red ink on a screen doesn’t always mean something is broken. It could just be temporary fear spreading through the market. Unless the fundamentals of the company have changed, selling low just locks in a paper loss and turns it into a real one.
Take Pfizer (PFE), for example. If I owned it during a crash, I wouldn't be inclined to sell. It’s a global pharmaceutical giant with deep R&D capabilities, consistent revenue from critical drugs and vaccines, and a strong balance sheet. A drop in share price due to market panic doesn’t erase its pipeline or its scientific expertise. The same goes for other solid companies—like Johnson & Johnson (JNJ), Procter & Gamble (PG), or Microsoft (MSFT). These companies have proven they can weather economic cycles and come out stronger.
Pfizer (PFE)
That said, I also wouldn’t rush to “buy the dip” without thinking it through. A dip can turn into a slide. And sometimes it’s not just a temporary drop—it could be the beginning of a prolonged bear market. I’d consider adding to my positions only in companies that are fundamentally strong, with durable competitive advantages and financial resilience. No speculative plays, no “hype stocks,” and certainly no buying just because something is cheap. Cheap can always get cheaper.
Timing also matters. If I believe the crash is driven by short-term panic—a geopolitical scare or an overreaction to bad earnings—I’d be more willing to take advantage of discounted prices. But if it’s something deeper, like a credit crisis or a prolonged global recession, I’d be much more cautious.
That’s when being a “spiders” investor pays off. I take small, careful steps, testing the web before committing further. Even if I decide to buy during a crash, I wouldn’t go in all at once. I’d likely dollar-cost average, spreading purchases over time to avoid catching a falling knife. Having dry powder—some cash on hand—gives me flexibility without forcing me into emotional decisions.
Another thing I think about is how long the downturn might last. If I expect the market to recover in six months to a year, I might be more confident in deploying capital. But if the outlook is murky or potentially years-long, patience becomes a key part of the strategy. After all, not every bear market is quick and painless. Look at the dot-com bust or the 2008 financial crisis—those recoveries took time.
There’s also the psychological side of things. It’s easy to say “stay the course” when markets are calm, but watching your portfolio fall 30–40% in real time is mentally exhausting. That’s why I think it’s important to invest in companies I truly understand and believe in. When I have conviction, it’s easier to tune out the noise.
In the end, if a crash comes, I don’t feel the need to chase opportunities or run for the exits. I’d rather observe, move cautiously if I see something compelling, and stay anchored in what I already understand. I don’t know how long the storm would last or how deep it might go, but I’m okay with not having all the answers in the moment. Sometimes just holding on, step by step like a spider across a fragile web, is enough.
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