How have past market crashes historically resolved?

Historically, major stock market crashes, like those in 1907, 1929, 2008, and during COVID, have eventually been followed by recoveries and periods of significant growth, often averaging substantial gains over several years.

Why is a VPN important for online security during uncertain economic times?

During economic uncertainty, identity theft and data breaches increase. A VPN like Surf Shark encrypts your data, masks your IP address, and prevents hackers from accessing your personal information, especially on public Wi-Fi networks.

What does historical data suggest about stock market performance after geopolitical events?

Historically, following major geopolitical events since World War II, stock prices have, on average, been about 5% higher six months later. This suggests that panic selling may be detrimental.

What is the most reliable long-term investment strategy?

The most reliable long-term investment strategy is a buy-and-hold approach for over 20 years. This method has consistently proven successful, as short-term market fluctuations become less significant over extended periods.

Should I invest during a market downturn?

Yes, investing during a market downturn can be beneficial if you have a long time horizon of several years. Buying when prices are down allows you to acquire assets at a lower cost, potentially leading to greater profits when the market recovers.

What is Warren Buffett's advice for market downturns?

Warren Buffett advises to 'be fearful when others are greedy, and greedy when others are fearful.' This means buying assets when they are undervalued due to widespread panic, rather than selling.

Key Moments

The Stock Market Crash Has Begun - Do THIS ASAP!

Graham Stephan

Education3 min read14 min video

Mar 12, 2026|29,622 views|2,510|307

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Key Moments

TL;DR

Market selloff is happening due to geopolitical events. Stay calm, invest long-term, and protect your data.

Key Insights

Geopolitical events, particularly in the Middle East, have triggered a market selloff due to oil price spikes and shipping disruptions.

Historical market crashes show that despite significant drops, markets have consistently recovered and grown over the long term.

Investor psychology often leads to panic selling during downturns, which historical data suggests is a detrimental strategy.

A long-term investment approach (20+ years) and consistent dollar-cost averaging are recommended strategies.

Protecting personal data and online security is crucial, especially during uncertain economic times, using tools like VPNs.

The current market downturn, while concerning, presents opportunities for long-term investors to buy assets at lower prices.

THE CURRENT MARKET DOWNTURN TRIGGER

The current market selloff was initiated by a joint attack by the United States and Israel on Iran, leading to Iran retaliating by disabling key shipping routes in the Middle East. This action significantly impacted global oil supply, particularly through the Strait of Hormuz, causing oil prices to surge and increasing the cost of various goods. Initially, the markets did not react, but as the situation escalated, investors began to price in the potential for a prolonged conflict, leading to widespread market declines.

LESSONS FROM HISTORICAL MARKET CRASHES

History offers valuable perspectives on market downturns. The 1907 crash saw a 50% drop following the San Francisco earthquake, yet the market surged significantly afterward. The 1929 Great Depression involved excessive bank lending leading to an 83% market drop, with recovery taking nearly two decades. Subsequent crashes in 1973-74, 1987, the 2001 dot-com bubble, and the 2008 Great Recession, as well as the recent COVID-19 dip, have all been followed by market recoveries and subsequent growth.

THE PSYCHOLOGY OF INVESTOR REACTIONS

Investor behavior during market downturns often involves panic and suboptimal decision-making. The typical cycle involves initial excitement at buying dips, followed by panic as prices continue to fall, leading to selling at significant losses. Subsequently, investors may wait too long to re-enter the market, often buying back in at prices similar to where they initially sold, thus missing out on recovery gains. This pattern has been observed in previous market events like those in 2020, 2022, and 2025.

THE PROVEN STRATEGY: LONG-TERM BUY AND HOLD

The most reliable strategy for navigating market volatility is a long-term buy and hold approach, ideally with an investment horizon of 20 years or more. Historically, despite periodic downturns, the stock market has shown a strong tendency to recover and grow. The key is to view market dips not as apocalyptic events, but as opportunities to acquire assets at lower prices, especially for those not planning to withdraw funds in the immediate future.

ADDRESSING GEOPOLITICAL RISKS AND MARKET TRENDS

Data suggests that geopolitical events, while causing short-term market fluctuations, historically do not derail long-term market growth. Studies indicate that markets tend to be higher six months after major geopolitical events. Furthermore, February and March are often weaker months, with trends typically resuming upward afterward. Midterm election years, like 2026, historically exhibit larger price pullbacks, reinforcing the need for consistent investing rather than reactive selling.

PROTECTING YOURSELF AMIDST UNCERTAINTY

In times of economic uncertainty and rising financial stress, it is crucial to also focus on protecting personal and financial information. The increase in online activities makes individuals more vulnerable to identity theft and data breaches. Utilizing tools like a Virtual Private Network (VPN), such as Surfshark, can encrypt online data, mask IP addresses, and prevent unauthorized access, thereby safeguarding sensitive information across various online platforms and public networks.

A PROACTIVE APPROACH TO PERSONAL FINANCE

Instead of succumbing to panic, individuals should adopt a proactive approach to their finances. This involves consistently tracking expenses, saving diligently, and continuing to invest as planned, especially utilizing strategies like dollar-cost averaging. The current market conditions, while presenting challenges, can ultimately be beneficial for disciplined investors who maintain their long-term strategy, potentially leading to greater financial gains over time.

Mentioned in This Episode

●Organizations

●Concepts

●People Referenced

Historical Market Crashes and Recoveries

Data extracted from this episode

Event/Period	Market Impact	Subsequent Recovery/Growth Average
1907 Crash	50% drop	193% surge over 4 years
Great Depression (1929)	83% drop over 3 years	Recovered over ~20 years, followed by 14 years of 815% growth
Post WWII	22% drop over 6 months	935% increase over 15 years
1973-74 Crash	40% drop	845% gain over 3 years
Black Monday (1987)	22% drop in 1 day	800% increase over 13 years
Dot-com bubble (2001)	40-60% loss	110% growth over 5 years
Great Recession (2008)	50% drop	Longest bull market in history until COVID
COVID Crash (2020)	30% drop	120% increase over 5 years

Average Intra-Year Pullbacks in Presidential Cycles (Since 1950)

Data extracted from this episode

Year Type	Average Decline (Peak-to-Trough)
Midterm Year (e.g., 2026)	17.5%
Other Years	11-13%

Geopolitical Events and Stock Market Performance

Data extracted from this episode

Event Context	Average Performance 6 Months Later
Major geopolitical event since WWII	+5% higher

Common Questions

The current market concerns are linked to a joint attack by the United States and Israel on Iran, which led Iran to disable shipping routes in the Middle East, causing oil prices to surge. This escalation has made markets price in a prolonged conflict.