r/investing • u/pea-k • 1d ago
Why is everyone panicking? Dips and peaks are normal — this is what you prepare for
I’ve been seeing a lot of panic lately — people saying “the market is trash,” “the economy is doomed,” or “we’re all screwed.” But honestly… this kind of volatility is exactly what investing is supposed to include.
Markets go up. Markets go down. That’s just how it works. The problem is most people say they want to invest, but what they actually want is a risk-free lottery ticket. The moment things stop going up in a straight line, everyone freaks out.
But this isn’t unexpected. This is the game.
You’re supposed to prepare for moments like these — not be surprised by them.
Look at Warren Buffett. He’s sitting on $350 billion in cash right now. Not because he’s scared — but because he’s patient. He’s waiting to buy when others are selling in fear.
Most people: • Invest emotionally • React to headlines • Forget about cycles • Expect linear growth
But if you zoom out, you’ll see that every dip — every crash — has been followed by recovery. Long-term investors win because they don’t flinch.
If you’re investing for the next 10, 20, 30 years… a red day, week, or even year isn’t a signal to panic. It’s a time to stay focused, stay consistent, and if you can — buy more.
Just wanted to share this in case anyone needs a reminder. You’re not doing it wrong. This is investing.
5
u/bony_doughnut 1d ago
Stock market crashing to levels not seen since...last year
2
u/Pitiful-Following997 1d ago
Reddit is so dramatic lol. "This is a crash like we've never seen before...truly....Just don't hit 1Y,5Y or Max on your investing app of choice!....This time we've got Trump right where we want him!!!"
2
u/bony_doughnut 1d ago
Yea, the 2022 correction gave back 2 years of gains, the COVID crash gave back nearly 5 years of gains at one point, and that's just this decade
4
u/Shobed 1d ago
They’re panicking because this isn't normal. It is not normal for the president to intentionally crash the economy. This carelessness and cruelty toward the financial stability of everyone is not normal.
-1
u/pea-k 1d ago
Totally get where you’re coming from. There’s definitely a difference between regular economic cycles and intentional or reckless policy decisions that shake global confidence. That isn’t business as usual, and people are right to be concerned.
My post wasn’t meant to excuse harmful leadership or normalize chaos — it was more about encouraging people not to panic-sell during downturns and to zoom out when looking at their investments.
Appreciate your point — it’s valid, and it adds more depth to the discussion around what’s really going on beneath the surface.
4
u/theorizable 1d ago
Dips and peaks are normal. Are tariffs of this magnitude normal? Is having a president who is saying he's going to double-down on Tariffs as much as needed normal when the entire world is responding in coordination?
There are times in US history before that we've destroyed our economy with tariffs. You can compare the current situation against that, or compare against the minor peaks and troughs that are more recent but share very few qualities with what's happening right now (as you're doing).
It feels like a lot of people in this subreddit have heard with such repetition that there will always be dips and peaks, so they uncritically engage with the actual context around what's happening and fall back to "this is normal". Please explain how alienating the entire world as a value-added economy is normal?
1
u/pea-k 1d ago
You bring up some solid historical context and fair criticism — and you’re right that tariffs at this level, combined with political unpredictability, are not your run-of-the-mill fluctuations. I wasn’t trying to dismiss the unique factors at play right now.
When I said “this is normal,” I was speaking specifically about market volatility — dips and recoveries that investors often overreact to emotionally. That doesn’t mean I think every cause behind a dip is “normal” or harmless. We can still acknowledge broader geopolitical and economic concerns and maintain a long-term perspective when investing.
Thanks for pushing the conversation deeper — these are the nuances we need to be talking about.
2
u/Sure_Ranger_4487 1d ago
It’s quite flippant to say this is normal. Dips are normal. The president of the United States saying he purposefully crashed the stock market is not normal. 99% of us aren’t rich and this is our livelihood and future that is being toyed with. Of course investing comes with risks, but with the instability of our administration actually having a solid plan about anything it feels different.
2
u/Pitiful-Following997 1d ago
Brother this is reddit - involve Trump and it's the end of the world "but literally, this time....yes tTHIS time feels different" lmao
1
u/theorizable 1d ago
No, it doesn't just feel different. It's measurably different. You're banking on a return to normalcy (i.e. a lifting of tariffs). That may happen. Trump changes his mind all the time. What if it doesn't? How much growth do you expect to see in 5 years after we nuke relationships with every single one of our trading partners when our economy is based on importing shit, then adding value to it?
1
u/Pitiful-Following997 1d ago edited 1d ago
The market has been GROSSLY overpriced (and still is, enormously) - a correction...excuse me, end of the world crash as reddit/liberals put it has been needed for years now. You deserve to have lost money if you've kept on buying and adding to PE ratio's this high.
you're throwing a lot of what if's also, so here's some of mine: What if new trade relationships are made with us (hint deals are already being made). You're also banking on Trump changing his mind "all the time" - Trump is a 90's democrat who is more genuine than 90% of current politicians (the video of Nancy Pelosi going viral is a perfect parallel to this....if you took the transcript of her speaking about tariffs with china and took names out you could easily say it was Trump who was speaking and even reddit would believe you)....Do you really think Trump is going to let a failing market get in the way of his THIRD term?? OH THE HUMANITY!!!!
Let me know when you and all the other fine people of reddit enter back into the market....Or go invest in the nicaraguan S&P 500 I guess, idc lol.
2
u/theorizable 1d ago
Who are you arguing against? How are conservatives so good at conjuring up alternate reality demons to shadowbox? Lots of practice I guess?
Please do some middle-school level research into how P/E ratios are generally meaningless at best and misleading at worst when evaluating companies.
1
2
u/scarpozzi 1d ago
I like your optimism. I'm mostly upset though that Trump was supposed to fix the economy by simply sitting in the chair. He wasn't supposed to start playing with the controls.
Things will recover, but manufacturing is mostly what we lost overseas. In many cases we lost it because we didn't want it to start with. Much of the manufacturing that we, as consumers, depend on is just nasty these days. Chinese factories create a lot of pollution and toxic waste for our plastics and chemicals....bringing much of that back may not be a good thing.
I do understand the argument that not having a supply chain that is local and being dependent on foreign countries for some products is bad. So for those reasons, I'm torn...but labor and cost of goods sold better be competitive or we'll lose manufacturing again as soon as the tariffs are gone. I don't want to be dependent on tariffs.
1
u/pea-k 1d ago
I really appreciate your perspective — it’s clear you’ve thought this through. I totally get the concern about manufacturing and the long-term impact of offshoring it. It’s a complex issue: bringing it back could help with supply chain security and job creation, but at what environmental or economic cost?
You hit the nail on the head with the tension between competitiveness and sustainability. We can’t rely on tariffs forever — the solution has to be innovation, automation, and creating value that offsets higher domestic costs. Otherwise, it’s a temporary fix, not a real shift.
Also, yeah — the idea that any one president can “fix” the economy by just being in office is oversold. It’s always more nuanced, and the economy is way bigger than any one administration’s actions.
Thanks for the thoughtful reply. These convos are what make Reddit worth reading.
1
u/khorne3 1d ago edited 1d ago
we didnt lose manufacturing, we gave it away. and what OP doesnt understand is that part of giving it away was to also help the countries that got it get set up. NOW we are trying to de-evolve our economy into something that it doesnt have a labor supply to support while sending other countries that sold us goods into economic turmoil. so yes it is different. yes it is stupid. no it will not work since the amount of time needed to do this is longer than a presidency so people will wait. so the guy that says "just be warren buffet" is partially right, not about cash reserves that they mentioned but in terms of needed to dig through pile of steaming shit to find value then invest in that.
3
u/pea-k 1d ago
Appreciate the passion — seriously. You make some fair points about how we gave away manufacturing strategically, not just “lost” it by accident. Globalization had its reasons, and yeah, shifting that back isn’t a one-presidency fix.
But let’s keep it real: my post wasn’t about reshaping the global economy. It was about investor mindset — not politics, not manufacturing policy. The “just be Warren Buffett” line was misinterpreted — it wasn’t about trying to be him literally, but about learning from the mindset of not panicking in downturns and finding value when others don’t.
If you actually read the full post, the core idea was: stay calm, zoom out, and remember volatility is normal. That still stands.
Name-calling doesn’t add much, but I’m still glad you chimed in — these convos are how people learn from different angles.
2
u/rAin_nul 1d ago
This is not just simple dips and peaks. During simple dips and peaks you don't lose others trust. You won't recover the rest of world's trust. On long term, everyone will try to move away from the US. This is how you destroy a country, but usually countries try to not doing it to themselves.
1
u/pea-k 1d ago
You’re absolutely right that trust — especially on the global stage — is harder to regain than it is to lose. And I agree, this isn’t just about market movements. There are real geopolitical consequences to how a country conducts itself economically and diplomatically.
That said, my original post wasn’t meant to downplay those concerns. It was focused more on the investor reaction to volatility, not dismissing the seriousness of broader economic or political shifts. Markets reflect sentiment in the short term, but long-term investing is about discipline even during uncertainty — including when leadership decisions make things feel unstable.
Valid concerns though — and I appreciate you calling out the bigger picture.
1
u/Munkeyman18290 1d ago
Less worried just about the markets, more worried about a recession/ depression. The last time a president went all in on tariffs, America sunk into a lengthy depression.
You can debate how much effect the tariffs had on the cause, length, and severity of the 1930s depression, but historians all agree on one thing: they definitely did not help.
1
u/Pitiful-Following997 1d ago
Haven't you heard?? Recession only starts when you have....let me check my paperwork here...After 2 straight quarters of negative GDP....unless you are Joe Biden of course LOL
1
u/i_exaggerated 1d ago
Haven’t you heard? “But it’s different this time.”
Just like every other time it was different.
1
u/wampum 1d ago edited 1d ago
The US discarded all of our biggest trade partners and allies in exchange for Russia, Belarus, and N Korea.
We have congress asleep at the wheel and a seemingly toothless judiciary. The checks and balances of our democracy are unravelling.
We have a runaway executive branch who skipped history class and is repeating the same abysmal economic policies that ushered in the Great Depression.
This is different.
2
u/pea-k 1d ago
I get where you’re coming from — shifting alliances and erratic policy moves can definitely shake confidence and disrupt long-standing economic relationships. It’s frustrating to see short-term politics have such a deep impact on long-term global strategy.
That said, I still think it’s important not to let fear dominate our perspective. Every generation has faced “this is different” moments — stagflation in the ’70s, the dot-com bubble, 2008. While leadership absolutely matters, markets are bigger than any one administration. They adapt, sometimes slowly and painfully, but they do.
This doesn’t mean ignoring real concerns — just not letting panic block us from thinking long-term and rationally.
1
u/wampum 1d ago
The uncertainty has caused irreparable harm to global trade and the USA’s position in the world.
If you are a company that is searching for a country to build your next factory, you seek somewhere with the rule of law, policy stability and fair and transparent corporate dispute resolution processes. We’ve discarded these strengths as we slip further into autocracy.
This is causing the world the wake up and take measures to disentangle themselves from the US, not just economically, but militarily.
The peace and prosperity we’ve all enjoyed for the last 80 years was from strong alliances, open shipping lanes, and respect for the international rules-based order.
2
u/pea-k 1d ago
You bring up some powerful points — and I don’t disagree that the erosion of trust in U.S. stability and leadership has real consequences, especially when it comes to global trade and diplomacy. Companies do look for consistency and rule of law when deciding where to invest, and if the U.S. loses its reputation as a safe and stable bet, it absolutely impacts our long-term standing.
That said, from an investor’s lens, part of the challenge is learning how to navigate this kind of uncertainty — not by ignoring it, but by adapting. The message I was trying to share wasn’t “everything’s fine,” but rather: panicking in response to volatility rarely serves investors well. Yes, the backdrop may be more serious now — and yes, it’s worth watching closely — but the strategy for many still comes down to staying informed, diversified, and long-term focused.
I really appreciate you laying this out — it adds depth to the conversation that often gets lost in headlines.
1
u/supernit2020 1d ago
Were you alive during Covid? It was suppose to be the black plague and the entire world shut down and no one knew when it would open again
All the hystericals hand wave that off now because we’re past it, just like with enough time all this hysteria will settle
-1
1
u/DaemonTargaryen2024 1d ago
A lot of sweet summer children experiencing their first winter. Hopefully they learn
1
1
u/NuclearPopTarts 1d ago
You are correct. I made a similar comment in a different thread and got tons of downvotes.
This is how panics work - there is no calming the hysterical crowd.
Take advantage of the opportunity and buy!!!
1
u/Mr_Pricklepants 1d ago
Please do. I've still got six figures in dividend-focused stocks that I need to exit.
1
u/Decent-Box-1859 1d ago
Because we just created conditions for stagflation for the next 10 years, and most stocks don't perform well during stagflation (last time experienced in the US was the 1970s). According to Scott Bessent, we are changing the global economic order for the first time since Bretton Woods (1944). Times are different.
2
u/pea-k 1d ago
Great point — stagflation is definitely one of the more challenging environments for investors, and you’re right to bring up the 1970s as a historical parallel. It’s not a fun scenario to be in, and if we do enter a prolonged stagflation period, it’ll require different strategies and expectations.
That said, even during the ’70s, some sectors did well (like commodities, energy, and certain value plays). While the broader market might struggle, there are still ways for disciplined investors to find opportunities — especially by staying diversified and focusing on fundamentals.
I totally agree that times are different — but that doesn’t necessarily mean they’re uninvestable. It just means we adapt.
Thanks for adding a smart perspective to the thread.
1
u/srivasta 1d ago
This tune might be just like the Smoot-Hawley tariff time. Not different. Still feel sanguine?
-1
u/Danson1987 1d ago
Ur telling people to time the market like warren buffet? Just stay invested live your life. DCA
1
u/pea-k 1d ago
Totally agree with DCA and staying invested — that’s actually what I do myself. I wasn’t suggesting timing the market. The Buffett reference was just to show that even the most experienced investors prepare for volatility instead of panicking. The takeaway was about keeping perspective, not trading strategies.
6
u/degausser22 1d ago
When you’re in it, it’s hard to think anything but “it’s different this time!”
Realistically at some point, the tariffs will be reversed or heavily reduced. The stock market will rocket then and people will look back and wish they bought more. Just like in March 2020.