Crashes Don’t Destroy Wealth… Reactions Do
The news headlines are loud, the uncertainty is real, and everyone has a hot take on the stock market right now.
We just saw the biggest 2-day crash since the 2020 COVID Stock Market Crash last week, followed by one of the largest daily rebounds with the stock market jumping nearly 10% in a single day (the 3rd biggest since World War II).
Volatility is high which means emotions are too.
The stock market isn’t reacting to real business performance right now, it’s reacting to what people think might happen.
And if you’re not retiring in the next few years? What's happening in this market is an opportunity to add more assets to your portfolio at a discount.
Is there a lot of uncertainty right now? Yes.
But we’ve been in similar "oh shit, wtf is going on" moments before…
We’ve had 4 major bear markets in the last 25 years alone:
2022: Fed Rate Hike Shock
2020: COVID Pandemic Crash
2008: Great Financial Crisis
2000: Tech Bubble
Every market crash is unique but they all follow a similar pattern.
And the people who’ve done well in the stock market don’t wait for everything to feel “safe” because they know once it does, the best deals are gone.
The real money is MADE in uncertain times.
Do you remember hearing stories about the people who sold all of their stocks during the 2020 COVID stock market crash and then missed out on the 67% rebound?
Looking back, the right move always seems obvious.
But the only thing that counts is what you do in moments when fear and uncertainty are high (like right now).
It’s easier to take advantage of opportunities during chaos when you:
Have a plan and strategy in place
Aren’t loaded up with consumer debt
Have at least 3 months of bills saved up
That’s why I talk about money management a lot through The Market Hustle.
It’s step #1 to becoming an elite investor so you’re not caught off guard whenever chaos hits.
In 2025, the chaos is tariffs. In 2029, it’ll be something else
It's estimated that the average American household could be paying $3,800 more a year if all of the tariffs stick...
Groceries, cars, and rent prices are already brutal. Now we’re adding even more pressure.
But here’s the truth: Panicking doesn’t protect you. Having a plan and acting on it will.
There is a lot of panic and uncertainty in the markets right now, with many investors starting to expect the worst-case scenario.
But there’s still a lot up in the air... Trump’s hard to predict. Tariff exemptions or new trade deals could be made at any time (such as the recent 90-day tariff pause). There’s also talk of income tax cuts to ease the pressure…
But nothing’s guaranteed. And you can’t build wealth on headlines or hope.
Things Can Change Fast in a Choppy Market
The Stock Market Jumped 9.5% the moment a 90-day tariff pause was announced.
Think about that for a minute…
All it took was a 90-day pause on tariffs to send markets FLYING.
Just a headline saying the thing the market was worried about… got delayed.
What does this show us? That most people are reacting to headlines right now.
But wealth isn’t built on reactions, it’s built on clarity.
The people who "win" in markets aren’t the ones who panic first. They’re the ones who stay consistent while everyone else freezes.
Narratives and sentiment can change fast in this type of market.
Tariff talks, Fed whispers, viral tweets… all of it can swing the market fast when emotions are running high.
The U.S. vs. China Trade War
There’s been a lot of noise about tariffs lately.
But if you zoom out, there’s an even bigger story unfolding.
The U.S. and China have completely different economic foundations.
The U.S. is driven by consumer spending, tech innovation, and backed by the largest stock market in the world — currently valued at $56 trillion.
China’s stock market sits at $14 trillion and depends heavily on exports, manufacturing, and real estate. All of which are now under pressure from deflation and slowing demand.
Here’s what matters: This tariff pressure on China isn’t new.
It started in 2018 under Trump and the Biden administration kept most of those tariffs in place, even expanding them in key sectors like electric vehicles and solar panels.
And just this past week, the U.S. paused tariffs for 90 days except for China, where it raised them to 145%.
China is clearly the focus here. I’m not sharing this to overwhelm you. I'm sharing it because it helps explain why the market feels shaky right now. And more importantly, why that doesn’t change the long-term opportunity for investors like us.
You don’t need to predict every move in global trade.
But understanding the bigger picture helps you see this for what it is: The U.S. and China aren't just fighting over tariffs, they’re changing the way global trade works.
That’s why I stay focused on the ownership game.
Because the investors who build during uncertainty are the ones who get ahead whenever the dust settles
The 4 Most Dangerous Words in Investing
"The four most dangerous words in investing are: This time it's different." — Sir John Templeton
Every "oh shit" moment has people predicting the "end of times" and talking about how the system will never recover from the current problem.
In 2022, interest rates spiked.
In 2020, the world shut down.
In 2008, the U.S. housing market collapsed.
In 2000, the dot-com bubble popped.
Each time felt different. But the pattern was the same:
Uncertainty about the future
Massive selloff
Policy shift
Businesses adapt
The market recovers
And the people who were able to see the buying opportunities during those "peak fear" moments? They got rewarded.
Not because they bought the exact bottom. But because they kept buying when it felt the hardest.
Can You Predict the Market?
The big swings we're seeing in the stock market show how shaky Wall Street is feeling with all the uncertainty around what’s going on.
But this is exactly where most people get burned. Most people get burned trying to predict the market instead of just playing the ownership game, just like in Monopoly.
Trying to make the “perfect moves” is a losing game.
Because you’ve gotta be right TWICE:
1. When to sell
2. When to buy back in
Good luck doing that consistently.
The solution? Make investing a habit instead.
You pay for your home every month.
You pay your phone bill every month.
You pay for nights out every month.
Start “paying” yourself too by stacking shares in quality companies every month.
If the market drops, you’ll add more stocks at a discount.
If it goes up, your current stocks grow, and you get richer.
A win-win either way.
When you make investing a habit, you:
Eliminate market timing
Reduce emotional decisions
Lower your average stock purchase price by buying market dips automatically
But the best part?
You stop waiting for the “perfect moment” and start building wealth.
You’re in the game and making moves.
Play the OWNERSHIP Game, Not the Prediction Game
The wealthiest 1% own 54% of all stocks. And they're not sitting around trading them 24/7. They buy and OWN them.
Every stock being sold on red days is being bought by someone else.
Usually? It’s millionaires and billionaires quietly buying up shares at a discount.
You still own the same number of shares you did before the market got choppy.
Volatility only becomes a problem if you hit that sell button and make the losses real.
Something to remember the next time you're tempted to sell just because stocks are going down.
If this newsletter gave you even a little clarity… imagine having a full step-by-step system to follow.
Money Mastery walks you through how to figure out what to invest in, increase your odds of profit, and build a strategy you’ll actually stick to. Check it out here.
