In record time, about 3-1/3 weeks, the Dow Jones Average fell almost 10,600 points from a high over 29,000 to a low of about 18,600. This swoon, of course, was caused by the uncertainties and projected economic crises of the COVID-19 virus. Or perhaps the underlying economy was weakening beneath the surface and the virus pricked a bubble.

From the standpoint of a long-term investor, market crashes are perennial events that reoccur every decade or so, sometimes more spread out, other times more concentrated. Each crash seems to spell the end of the world. But this is so wrong.

Our expansive and democratic society, with its decentralization of so many things, is brilliant in coming up with solutions. We call this “resilience.” Resilience works. It always has, and it always will. Resilience solves real world problems, from viruses or climate change. Resilience creates a counterpoint: the counterpoint to each market crisis is a subsequent market all-time high. Sometimes reaching all-time highs goes quickly, other times it takes several years or more. But as morning follows night, all-time market highs ultimately follow crashes. RESILIENCE!
The moral of the story is that crises and hardships that precipitate giant stock market drops and economic chaos are, from the investor brain, times to buy, to accelerate investing.
When fear abounds and all the newspapers show images of stock brokers crying, BUY! Phillip and I recently bought some broad-based ETFs like SPY, and within several weeks we’ve already profited rather well. Phillip, by the way, is also an ER doctor, so he is on the front lines helping patients fight the virus. But as an investor, he knows that resilience will ultimately lead the markets to new pinnacles of value. So he takes a deep breath, and in the environment of investment terror, he buys.

Should you wait until the market bottoms? Of course not. No one knows when this happens. Just watch for signs of fear, like those crying stock brokers. When you see them, if you should have a bit of extra cash, buy the market. RESILIENCE! Keep doing this throughout your investment life.