What We Did During the Downturn (And Why It Worked)
Market drops can be unsettling. But they aren’t new. In fact, they’re normal. We just experienced one during the past two months.
What’s also normal? Markets recover. Upturns follow downturns.
We were reminded of that recently. The market pulled back over 20%. Now it’s back near where it started. The clients who stayed invested—and the ones who added during the downturn—are seeing clear results.
What We Did
When markets fell, we didn’t panic. We had a plan.
We bought more: For our clients, we keep money set aside in an "extra spare tire" earmarked for this specific reason.
We rebalanced: We used the drop to shift portfolios back to target weights, selling what held up better and buying what fell more.
We stayed consistent: No knee-jerk moves. No selling out. Just following the plan.
These actions weren’t based on prediction. They were based on discipline.
We executed their written market downturn plan....
... if the market drops 10%, then we take 10% of the extra spare tire and invest.
If the market drops 20%, then we take 20% of the extra spare tire and invest.
If the market drops 30%, then we take 30% of the extra spare tire and invest.
If the market drops 40%, then we take 40% of the extra spare tire and invest.
What Happened Next
The market recovered.
Clients who added during the decline now own more shares—bought at lower prices—that have rebounded. That’s how real long-term growth happens.
Those who followed the plan didn’t just survive the downturn. They used it.
A Few Reminders
Here’s what tends to get lost during pullbacks:
Downturns are part of investing
The average intra-year drop in the market is about 14%. But most years still end positive. Declines are common, not catastrophic.Upturns often follow bad news
The biggest gains often come right after the worst drops. If you’re not in the market during the recovery, you miss a lot.Missing a few key days kills long-term returns
Trying to “wait out the volatility” or “get back in when things calm down” usually backfires. Most of the market’s growth comes from just a handful of days each year. Miss those and performance drops sharply.
What This Means for You
If you stayed invested and followed the plan, you’re seeing the upside now. If you added during the drop, you’re even further ahead.
If you didn’t act this time, and want to prepare for the next pullback, that’s what we’re here for. We won’t try to time the market—but we will use downturns to your advantage.
Related: The Market Is Down—Now What? Smart Moves to Consider
