Why You Shouldn't Fear a Stock Market Crash

 

Photo by Maxim Hopman on Unsplash

With 2026 approaching, the idea of the stock market dropping 30% can feel like the end of the world.

When headlines scream about losses, it's easy to imagine the worst-case scenario and sell everything at the absolute worst time just to cut down on the losses.

But what if I tell you a stock market crash, or a bear market, might actually be one of the best things for your investment journey?

In this post, we’ll look at why crashes happen and how you can see them as opportunities rather than disasters.

Why Do Stock Markets Crash?

Stock market crashes usually happen when prices of stocks drop sharply in a very short period. One major reason is fear. When investors get nervous about the economy, company earnings, or global events, they start selling their stocks. This panic selling can snowball, pushing prices down even faster, which can make the situation feel much worse than it actually is.

Another cause is overvaluation. Sometimes stocks become way more expensive than the actual profits and growth of the companies justify. When investors realize this, they may rush to sell before prices fall further. Crashes can also be triggered by unexpected events, like a financial crisis, a sudden change in government policy, or even a global event that shakes confidence in markets.

Sometimes, crashes or sudden drops happen because of unexpected news or events that shake investor confidence. I still remember when Elon Musk smoked weed on the Joe Rogan Experience podcast, which led to a 10% drop in Tesla’s stock in a single day. Even though the incident didn’t affect Tesla’s products or profits, investors reacted emotionally, showing just how sensitive the market can be to headlines, rumors, or public perception.

Unexpected events like pandemics, wars, or natural disasters can yank the economy downward faster than anyone expects. When something big and scary hits, people naturally pull back on spending because they’re worried about their jobs, savings, and what tomorrow might look like. That drop in spending means companies sell fewer products, which forces them to cut production, delay new projects, or even reduce staff. Investors see all this uncertainty and start panicking too, which sends stock prices falling.

Crashes are part of the market cycle. The stock market naturally goes through ups and downs because it's part of the growth process.

What Happens During a Stock Market Crash?

Throughout history, some of the biggest stock market crashes include Black Monday (1987), the Dot-com Bubble (2000), the Global Financial Crisis (2008), and the COVID-19 crash (2020). And every time the stock market crashes, a similar pattern tends to repeat.

When markets start falling, fear spreads fast. Investors often sell stocks to avoid further losses, even if their investments are fundamentally strong. This panic selling fuels even bigger drops, creating a self-reinforcing cycle.

At the same time, news outlets, social media, and financial analysts amplify the fear. Every negative headline can make investors worry more, triggering additional selling and worsen the downward spiral.

Why You Shouldn't Panic

I get it. Seeing you entire portfolio drop 50% and lose thousands of dollars can feel devastating, i have been there. It's like watching your hard earned money dwindle away. 

But if you're investing for the long term, say 10, 20, 30 or even years. Then you should never be worried about a stock market crash because the crashes will never be the end of your investing journey. You have a long time horizon to ride it out and let the stock market rebound stronger. Lets take a look at this example of VOO which tracks the top 500 companies in the US.

VOO 1-month performance: picture taken 29/11/2025

When you look at the market over a short period, like one month, a drop feels like a disaster. In this picture, you see red lines, sharp dips and volatility. It’s easy to panic here because you are zoomed in too close, making every normal fluctuation look like a cliff. This chart represents fear and volatility—it shows us that in the short run, the market is voting on new

VOO performance since 2010: picture taken 29/11/2025

Now, zoom out to the last 10+ years, and that "scary" drop from the monthly chart becomes invisible. This picture shows the relentless power of resilience and growth. Notice how the line isn't perfectly straight—there are little dips along the way—but the overall direction is undeniably up. Those dips were the "crashes" and "crises" of their time, yet they eventually even out in an upward trending line.

This chart proves that if you give it enough time, the market heals itself, climbs higher, and rewards those who stayed on the ride instead of jumping off when things are scary.

The Biggest Mistakes in Investing

Most people try to sell when the market goes crazy and buy back when stocks are rising. And most of the time, they get it wrong, even professionals.

Typically, people sell when they’re scared, near the bottom, and then try to buy back after the market has already recovered. Timing the market perfectly is incredibly difficult. By doing this, they end up losing twice: selling low and buying high.

In fact, 99% of people who try to time the market miss the most important days—the big rebounds. Studies show that if you missed just the 10 best days in the market over a 20-year period, you could nearly cut your returns in half.

What to do Instead?

Learning how to handle and take advantage of a stock market crash is a skill that every long-term investor should have. 

1. Build an Emergency Fund

The very first thing to do before a stock market crash happens is to build an emergency fund. This is the money that keeps your life running when things get messy — like if you lose your job, face a medical bill, or need to cover basic expenses during tough times. 

Aim to slowly build up 3–6 months’ worth of living expenses in a high-yield savings account. Even if you can’t reach that amount right now, small monthly deposits will get you there over time. Start simple and save enough to cover one month of expenses first, then build from there. What matters most is consistency; little by little, your emergency fund becomes a real safety net.

When you have this safety cushion, you don’t need to touch your investments when the market is falling. Without it, you might be forced to withdraw your money at the worst possible time, locking in losses that could’ve recovered later.

2. Know Your Investments

A stock market crash is a good moment to re-evaluate whether the companies you're following are fundamentally strong. If the business still has solid profits, good prospects, low debt, and a history of surviving tough times, its lower price becomes an opportunity rather than a threat.

To evaluate your investments, start by checking whether they still match your goals, risk tolerance, and time horizon. Ask yourself simple questions like: Why did I buy this? Do I still believe in the company or fund? Has anything major changed in its long-term outlook? Look at basic indicators such as the company’s revenue trend, profit growth, debt level, and whether it still has a strong competitive advantage. For funds or ETFs, review the fees, diversification, and long-term performance.

3. Focus on the Long Term

When the market crashes, it’s super easy to panic because everything looks like it’s falling apart. But focusing on the long term is really about zooming out. Instead of staring at the daily charts (which honestly look like a roller coaster), remind yourself why you invested in the first place. 

Historically, markets have always recovered from crashes, whether it was due to pandemics, wars, recessions, or random events. Keeping this big-picture perspective helps you stay calm and avoid emotional decisions that could hurt your progress later.

4. Diversify Your Investments

 When the stock market crashes, not all investments fall at the same rate, and some may even hold their value better than others. By spreading your money across different types of assets—like stocks, bonds, real estate, and even cash—you reduce the risk of everything sinking at once. It’s a way of protecting your portfolio from massive dips, because even if one area gets hit hard, the others can help keep your overall wealth more stable.

To diversify effectively, start by mixing broad categories: combine local and international stocks, add some bonds (which tend to be more stable), and consider including assets like REITs or index funds for extra balance. You don’t have to overcomplicate it—simple, low-cost index funds already give you exposure to hundreds or thousands of companies at once. 

The goal is to avoid having all your money tied to a single company, sector, or country.

5. Stay Calm and Keep Buying

When you walk into a shop and everything is on sale, you’d naturally start stocking up, right? But ironically, when your favourite stock or ETF drops 30% and is basically “on sale,” that’s exactly when most people decide to panic and run away. T

The key to staying calm during a stock market crash is understanding that crashes are a normal part of how markets work—they’ve happened before, and they’ll happen again.

Like Warren Buffett famously said, “Be greedy when others are fearful.” Keeping up with your regular investing habit, even during a downturn, allows you to buy more shares at cheaper prices. That’s the power of sticking to your plan instead of letting fear take over. Consistency always beats trying to time the perfect moment. By staying focused on your long-term goals and continuing your normal monthly contributions, you’re essentially buying great companies at a discount—setting yourself up for an even stronger gain when the market eventually bounces back.

Final Thoughts

Stock market crashes can be scary, but they’re also opportunities in disguise. With a solid emergency fund, diversified investments, and a clear long-term plan, you can ride out the volatility instead of panicking.

The real power comes from patience and consistency. So stay calm and get wealthy.

Why We Do Stupid Things For Love

 

Falling in love is wonderful, but it also makes us do the kind of things that would make our logical brain facepalm. 

Suddenly, smart, rational people think it's perfectly fine to text someone at 2 a.m., spend hours overthinking about a reply, or spend their entire paycheck for overpriced gifts just to impress. Love makes us a little stupid, and honestly, kinda hilarious when you look back at those moments.

In this post, we'll uncover the psychology of love and why we do stupid things for love.

The Science of Love

Have you ever heard someone say things like, “I have butterflies in my stomach” or “I’m falling head over heels”? Yep, those are classic signs that your brain is telling you—you’re in love. Studies have shown that being in love activates the same areas of the brain linked to obsession, addiction, and reward, particularly the Ventral Tegmental Area (VTA).

Let's take a look at how hormones play a role in all this craziness.

Dopamine

When you're in love, your brain releases more dopamine. The hormone that is linked to motivation, pleasure, and reward. That's why thinking about or seeing your crush gives you the "high" and that excitement. The high is equivalent to winning a lottery or getting a promotion at work. 

Just like drugs, dopamine can make love feel like an addiction. By replaying the same scenes over and over, the more you reinforce behaviors that push you to think about them constantly. That's the reason a simple smile emoji or birthday wish can feel extra special.

Having a crush is addictive because it's so unpredictable. If you have ever been in love, you know what I am talking about. You start creating stories in your head like, “Why hasn’t she texted me back yet? Did I say something wrong?” That uncertainty triggers a surge of dopamine that keeps you hooked.

It's more like gambling but without the side effects of going broke. Slot machines keep people engaged because the win doesn't come every time, and the unpredictability is what makes the reward even sweeter. Love works under the same principle. When your crush finally texts back or shows slight affection, the emotional payoff feels worthwhile. The next thing you know, you are craving more of it.

Serotonin

Studies show that when we fall in love, our serotonin levels drop—the very hormone that helps regulate mood and control obsessive thoughts. This is also why people with Obsessive-Compulsive Disorder (OCD) tend to have lower serotonin levels too. 

In early stages of infatuation, the dip in serotonin is what makes your crush live rent-free in your head, even when you're trying to focus on something more important. This also explains why love feels like a beautiful obsession. You daydream about them, check your phone constantly for their reply, and crave their attention.

This makes our emotions swing wildly. Extreme happiness when things go well, despair and sadness when things go wrong.

To put it simply, serotonin is the reason love doesn't just make you feel good; it consumes your thoughts as well.

Oxytocin

Oxytocin, often called the "love hormone," is often linked to intimacy, trust, and long-term relationships. It's released during moments of physical closeness like touching, kissing, or having sex. 

A study found out that couples in the early stages of romantic relationship have significantly higher levels of serotonin compared to their single counterparts.

Oxytocin explains why love can feel secure and comfortable. It lowers stress, anxiety and induces feelings of security and peacefulness. That’s why something as simple as holding your partner’s hand during a tough time can instantly make you feel calmer.

How Romance Clouds Our Judgement?

When chemicals like dopamine and oxytocin flood our brain, they also cloud our rational mind too. Suddenly, you are not thinking with logic; you are thinking with butterflies (or are you even thinking at that point?). That’s why clear red flags—like when they never initiate conversations, give you short replies, or only text when they need something—often get swept under the rug.

From an evolutionary perspective, this "love smoke" kinda makes sense. Humans are wired to prioritize bonds and procreation over rationality. Think about it for a second. If our past ancestors paused to analyze every mate's flaws, humans might not have made it this far. Instead, nature designed us to overlook imperfections long enough to form strong pair bonds, reproduce, and ensure the survival of the next generation.

That's why the most rational person on earth can do irrational things for love. Your brain temporarily puts logic in the backseat to make sure connection and physical intimacy take center stage.

So next time you find yourself ignoring red flags, remember it's not poor decision-making; it's millions of years of human evolution driving you toward romantic love.

Love Is Blind

When you are in love, your brain sees your crush or partner through rose-colored glasses. The scientist called it the "halo effect," a tendency to let a positive trait of a person overwrite their flaws. When someone looks physically attractive, it's easy to assume they are also smart and kind as well. This is why we choose the wrong person to fall in love with or get stuck in a miserable relationship.

Love doesn't just make us more forgiving; it also amplifies the effect of confirmation bias. We start searching for evidence that confirms our beliefs while ignoring the ones that contradict them. Did your partner ignore you for no reason? Your brain might shrug it off as a “not-a-big-deal thing,” because admitting the behavior would clash with your idea of them as perfect. 

This bias isn't a totally bad thing. In fact, it helps couples create meaningful bonds, build trust, and give relationships the momentum they need in the early stages. The trick is to acknowledge them as early as possible so you can save yourself from heartbreak later down the line.

The Illusion of "The One"

Modern culture plays a huge role in shaping the idea of “the one.” From Disney movies to romance dramas to pop songs, we’ve been fed the same storyline since we were kids: somewhere out there is a perfect person who is destined for you, will magically understand you, and will complete your life. Hollywood loves the soulmate narrative because it’s emotionally satisfying and easy to package. These stories might be wonderful and fun, but they also subconsciously tells us that love is something we find, not something we build

Beyond entertainment, the idea of “the one” is comforting in today's modern world. Life is full of uncertainty—careers change, people move, friendships fade—but believing that love has a prewritten script gives us a sense of stability. If there’s only one perfect partner out there, then choosing becomes easier and the fear of making the “wrong decision” disappears. It’s emotionally comforting to think the universe has already sorted out your love life for you. This belief gives people hope, reassurance, and something magical to hold onto.

Believing that someone is “the one” can make us overlook reality in ways that aren’t healthy. When you’re convinced a person is your soulmate, you’re far more likely to excuse behaviors that clearly don’t sit right with you. Red flags suddenly look like “quirks,” and poor communication gets rebranded as “they’re just busy.” You start forcing the relationship to fit the fantasy instead of honestly evaluating whether you’re actually compatible. This mindset can trap you in relationships that drain you.

The belief in “the one” also puts unrealistic expectations on relationships. If you think someone is your perfect match, you might expect them to intuitively understand your needs, always agree with you, and never hurt your feelings. But real relationships require effort, compromise, and understanding. When problems inevitably appear, you might think something is “wrong” rather than seeing it as a normal part of building a healthy bond. This creates disappointment, anxiety, and emotional burnout.

In the end, the idea of "the one" limits your choices and hinders you from seeing true connections are made, not magically destined.

Conclusion

Falling in love isn’t just a feeling. It’s a straight-up emotional rollercoaster for your brain. Love nudges us into seeing the world through rose-colored glasses. That’s why we sometimes make decisions that, looking back, seem completely crazy.

Understanding the science behind it allows us to make smarter decisions while still enjoying the thrill of love.