on October 21, 2025
Where some investors see bad news, others see opportunities. A bear market or a string of down days may not be as terrible as you think. For those with level heads and the right circumstances, this may even be an excellent opportunity to increase investments. Let’s talk about how to responsibly approach this decision.
Fighting Human Nature
When the stock market plummets, or even dips, some investors tend to panic. They might make hasty decisions, like dumping a particular stock or pulling a large chunk of their investments from the market. When financial decisions are made quickly or are prompted by fear, they often do not end well. Rather, investors can and do miss out on market bounce-backs and are forced to buy back in at a higher price.
According to research by JPMorgan, “The market’s best days tend to closely follow the worst days…seven of the market’s 10 best days occurred within two weeks of the 10 worst days, according to JPMorgan’s data spanning the past 20 years. For example, in 2020, markets saw their second-worst day of the year on March 12 at the onset of the Covid pandemic. The next day, the markets saw their second-best day of the year.”
Although slow or volatile markets can seem frightening on the surface and can last a long time, there is plenty of evidence that these markets will eventually bounce back. Historically, that has always been the case. So, if you trust the data (about one hundred years of it), you will know that it’s best to fight against your gut reaction to sell off investments or make major decisions during these times. Either ride the wave OR look at these time periods as an opportunity.
Capitalizing on Slow Periods
My typical, catch-all investment advice is to stick to your original plan, don’t make any rash decisions, and think long-term. A broad base of prudently-selected investments should weather any financial storms. However, some investors may want to do something differently: increase their investments.
Though not every investor is in a position to amplify their investments when the market is down, this can be a great opportunity for those who have a solid financial base, are risk tolerant, and/or have a long investment timeline. When the market is down, the value of stocks and index funds dips, and you can essentially buy “more bang for your buck.” This is like shopping a sale, knowing that whatever you purchase will likely increase in value after you buy it. Keep in mind, there is always risk involved in investing, and it’s not usually a good idea to buy individual stocks in companies that are floundering. However, if you purchase broadly, investing in many different companies across many different industries (which is what index funds achieve), your risk drops significantly.
So, if you are in the right position and understand the risk, it could be a good idea to increase your investments. This isn’t a “cowboy” move made by reckless investors (like timing the market or short selling is). Rather, it is a way to increase your purchasing power—buying shares in the same companies but at a discounted price.
I believe in the strength of the market and the resilience of businesses. Because of that, I see dips or slows in the stock market as potential opportunities for certain investors, rather than reasons to panic. If you are thinking about amplifying your investments, I encourage you to contact a trustworthy financial advisor and develop a plan to go about your purchases with the same prudence and discipline as you would when the market is booming.