As your advisor, I spend a lot of time helping you plan for the future.
But sometimes the most important thing we can do together is remember the past—accurately.
The market collapse during COVID already feels like a lifetime ago. That’s understandable. It was frightening, disruptive, and deeply personal. Most of us would rather not relive it.
But forgetting it entirely would be a mistake.
In early 2020, the global economy effectively shut down. Businesses couldn’t forecast earnings. Travel stopped. Entire industries went quiet. In just over a month, the U.S. stock market fell about 34%, one of the fastest declines in history.1
At the time, no one knew how long the damage would last. Fear wasn’t irrationality, it was human.
And yet, what happened next is the part many investors don’t remember clearly enough.
Massive government and central-bank support followed. The recession itself lasted only a few months. Markets rebounded sharply from their lows and reached new highs far sooner than most people expected. Investors who stayed the course were rewarded; those who panicked and sold often locked in losses they didn’t need to take.
Why does this matter now?
Because the next crisis will come. It always does.
It won’t look like COVID. It won’t look like the financial crisis or the tech bubble or any other downturn we’ve experienced. Each one feels “different” when you’re in it—and in some ways, it always is.
But the long-term pattern has been remarkably consistent: markets recover, economies adapt, and disciplined investors do better than reactive ones.
One of my most important roles is not predicting the next downturn. It’s helping you avoid the emotional decisions that can permanently damage long-term plans. That means remembering—not forgetting—what you’ve already lived through.
The lesson of COVID isn’t that markets are fragile. It’s that they’re resilient.
The lesson isn’t that fear should be ignored. It’s that fear shouldn’t be allowed to drive decisions.
If we hold on to that experience—honestly and clearly—it can help make future market volatility less stressful and far less disruptive to your goals.
“This time feels different” is a powerful emotion.
But history keeps reminding us of something equally powerful:
This, too, passes.
And planning works best when we remember that.
Sources:
1 Corporate Finance Institute. “The Economic Crash of 2020.” Corporate Finance Institute, Corporate Finance Institute Team, https://corporatefinanceinstitute.com/resources/economics/the-economic-crash-of-2020/.