❗Relax & Pay Attention
Before You Panic, Take a Moment.
When we see our investments drop, our instinct is to do something — usually, to sell. But before you panic, take a deep breath. Let’s first understand what’s really happening.
A market correction is a normal part of investing. It happens when stock prices fall sharply — for example, 10% within just two days. It might look scary, but in reality, it’s a natural part of the market cycle and doesn’t necessarily reflect the true value of your investments.
What Actually Happened Recently?
Recently, the S&P 500 index dropped more than 10% within two days. And this isn’t the first time it’s happened.
In fact, this is only the fourth time in history that this has happened. The other times were:
- October 1987 (Black Monday)
- November 2008 (Global Financial Crisis)
- March 2020 (COVID-19)
- And now, April 2025 (President Trump’s tariffs)
What Happens After That?
If we look at history, after each major drop, the market rebounded strongly over the next 5 years:
- 1987 → up +84%
- 2008 → up +137%
- 2020 → up +136%
- 2025 → up +??%
Why Is This Actually Good for Investors?
Because when everyone panics, prices drop — but the actual value of a company doesn’t necessarily change. The market moves based on expectations, not current reality.
Many people think, “I’ll sell now and come back when the market looks okay.” But by the time it looks okay, prices have usually gone back up. That’s when you miss out.
The Most Effective Strategy?
It’s not about timing the market. It’s about investing consistently, whether the market is up or down. This is a proven strategy that outperforms almost every attempt to predict the market.
So when others panic, take a moment to understand the situation and identify opportunities that align with your goals. Don’t make decisions based on emotion. In investing, the calm ones usually win.
Note
All information is based on the latest data obtained from trusted sources. Please refer to the official websites of major financial data providers for more details.
Disclaimer
This information is intended to help you better understand the market situation. It is not a guarantee of returns, nor is it a recommendation to act without your own careful consideration.
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As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.
Wahed Invest LLC (Wahed) is a US Securities and Exchange Commission (SEC) registered investment advisor. Wahed Invest provides brokerage services to its clients through its brokerage partner Apex Clearing Corporation, a member of NYSE - FINRA - SIPC and regulated by the SEC and the Commodity Futures Trading Commission. Registration does not imply a certain level of skill or training. Wahed does not intend to offer or solicit anyone to buy or sell securities in jurisdictions where Wahed is not registered or a region where an investment practice like this would be contrary to the laws or regulations. Any returns generated in the past do not guarantee future returns. All securities involve some risk and may result in loss. Any performance displayed in the advertisements or graphics on this site are for illustrative performances only.
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