Hi Reader!

I’m not particularly troubled by recent developments in the stock market.

And chances are, you shouldn’t be either.

To be clear, I AM troubled by much of what the Trump Administration has done, including its unhinged trade “policy.”

My personal views notwithstanding, market performance over the past few days isn’t all that unusual.

I don’t think it’s accurate (or helpful) to call the stock market reaction a “plunge.” I’m not sure current events are particularly unprecedented.

Although you’ll find PLENTY of media coverage suggesting otherwise.

I’ve found virtually all of the articles and editorial pieces on recent developments—even from authors I generally respect—to be… what’s the word… ill-advised, reactionary, internally contradictory… and generally just dumb.

A couple of thoughts:

• Market drops of 10% or 20% consistently—if unpredictably—happen. They don’t feel great, but they are simply part of investing.
• The causes of these drops always feel unprecedented and bewildering in the moment. If they didn’t, they wouldn’t cause such a market reaction! Pandemics, subprime mortgage crises, dot-com bubble bursts, world wars… the world goes through periods of chaos. We’ve always come out the other side.
• Your financial and investing plan simply must account for market downdrafts like the one we’re living through because they happen. No one can predict the future, but if history is any guide (and I have no better guide to offer), the market will recover… (and the whole saga will later repeat).

If you don’t have a thoughtful investment plan you’re comfortable with, now’s a good time to start putting one together.

If you do have a thoughtful investment plan, stop watching the market and go enjoy your life (or help out one of the many marginalized communities being scapegoated and victimized by Trump and his allies).

Questions, comments, concerns? Don’t just sit there—hit reply and let me know what’s on your mind.

Best,
Dave

P.S. Would some charts make you feel better? Here you go.

🚀 This long-term chart of stock market returns from Dimensional Fund Advisors is great for keeping things in context. Market corrections are consistent but small relative to the larger story.

👉 It’s also helpful to remember that after market drops, in the coming years the market has typically bounced back.

🪴 This final chart was in the New York Times on April 4, 2025. It’s far too short of a time period to give us much meaningful information, but it’s a nice reminder of why diversifying internationally is so important: US returns have suffered while other geographies have faired relatively better.