Calm down — A look at recent big downturns in the S&P 500 and the opportunities

The 2008/2009 recession started showing up when the index was at 1,530 and went down to ~700 more than a year and a half later. That’s a long time of buying opportunities. Then it broke even about four years later. That’s an even longer time of buying opportunities — an additional $24,000 of clearance shares of Roth IRA contributions at lower prices. Then the market went on to gain for years afterwards.







Then in September 2018 there was another big drop in the index. 2,900 to 2,400 from September thru December. Decent little buying opportunity there also. It gained everything back by April 2019.






The Covid market took over in March 2020. The index went from 3,300 in January 2020 to 2,500 at the bottom in March. If you missed out on the previous slump, this was your chance to get in before the huge rebound. It rebounded and was almost 3,400 in August. That gave you six months to get in on the lower prices.



Then it continued to rebound to around 4,800 until the current recession started showing in markets at the end of 2021. Now we’re seeing a huge downturn which means more buying opportunities.

Sure, percentages have increased because of the higher markets over time but you can’t argue with the fact that this downturn is an enormous opportunity for younger guys. I’m 37 years old and even though seeing it makes me sick, I’m still pumping money into retirement accounts each month and each check.

Hopefully this serves to calm some fears among the younger crowd here. For those near or in retirement, I have no answer other than to seek the assistance or wisdom of a good financial advisor with more knowledge than some jackoff on the money board. I really really feel bad for those in or near retirement such as my parents. My dad worked his arse off in the heat and cold for over 40 years to make sure we had what we needed growing up. He didn’t make much money and always put us first. He retired and a few months later my mom got diagnosed with breast cancer, now they have tons of medical bills to pay in retirement and now he sees their retirement - what little was there to begin with - disappearing fast. I legitimately fear that if the market continues to fall while prices continue to skyrocket, myself and siblings have to start assisting them with some things.

If you’re young and still have 10+ years left until retirement, ride this out and continue to contribute as always. You’ll be fine and will come out ahead on the other side.