on September 8, 2026
For years now, people have been predicting a stock market crash. Notice I said “people” and not experts. These predictions might be made on TikTok or Facebook or on the news, by anyone with a platform. Responsible financial advisors, on the other hand, usually decline to make such predictions with any certainty. The market is a wild beast, and it’s difficult to guess how it will move (and for how long) at any given time.
That said, it would surprise no one if the markets began a downward slide. A few months ago, I wrote about the AI bubble being poised to burst, and it seems that this bubble is only becoming thinner and more strained. As of two months ago, technology companies make up about 40 percent of the S&P 500, and many of those companies appear to be significantly overvalued. Reuters reports that many tech companies are going gangbusters with shares jumping in value by 100 or 200 percent in only a few months. “The way they’re performing … is like you’re driving a race car at 200 miles an hour,” said Walter Todd, chief investment officer at Greenwood Capital. “It doesn’t take much to cause an accident at that speed.” The article also notes that the dominance of tech stocks is on par with the late ’90s tech bubble, which burst in 2000.
While all this might sound troubling, I (as a financial advisor) am not terribly worried. And I’ll tell you why.
If the market does decline, or even crash, in the near future, I will view it as a correction, not a catastrophe. Right now, we’re seeing an abundance of reckless investing, an overconcentration in tech, and wild overvaluation of companies. A decline would correct the fictitious gains we’ve been experiencing and ground us back in reality. Yes, some of the many tech companies that are currently fighting for market dominance might fail, but that’s simply capitalism at work. The best, most innovative companies will keep going, adapt, and become better than ever.
Another reason I’m not worried: we’ve been here before. Since its founding, the stock market has always endured wild fluctuations. Some declines are temporary, while others are slow and steady, a plodding bear market. The most recent bear market in the US occurred in 2022, with the S&P 500 down nearly 25 percent. Since then, however, it has been on a precipitous climb, with the market regularly reaching new highs. The lesson here is that, historically, market drawdowns are always temporary. We get through them, we are humbled by them, and we bounce back stronger than ever. That has been the pattern for decade upon decade, and I have no reason to believe that the next market decline will be any different.
How can you, as an investor, weather the next inevitable bear market? If you’ve been working with a competent financial advisor who believes in evidence-based investing, you should already have a solid plan in place. This plan should be appropriately diversified, designed on a long horizon, and suitable to your specific needs and circumstances. If that’s the case, hands off! Leave your investments alone and let the market go through its bear phase. It’s possibly you’ll need to rebalance your portfolio, but you should not attempt this on your own. Instead, turn to a trusted financial advisor for guidance.
Keep in mind: most people fail miserably when they try to outwit or time the market. The best strategy is to stick to your plan, consult your financial advisor, and remember that valleys are normal and temporary. Soon, the market should regain its footing and begin to climb, and the short-term decline will be nothing but a memory.