☕️ History favours the bold, not the fearful

Howdy! 👋 

Scores of people found out the hard way last week that they’ve been speculating, not investing. 

Thank goodness WE don’t have that problem. 

WE know that the cost of missing opportunity is always more expensive than trying to avoid risks we can’t control because we talk about that frequently. 

Even so, it begs the question. 

Two actually. 

1. What do you do when “buy the dip” isn’t working? 
2. And how do you rebalance your portfolio when the markets are under pressure?  

The fabulous Stuart Varney asked me about both ahead of today’s opening bell. (Watch) 

Many investors want to believe that what’s happening now is new or unprecedented, but that’s simply not true. 

The financial markets have been a circus for hundreds of years.  

Decisions you make now could define your wealth for a decade or more, something I mentioned I last night’s short. (Watch) 

So, dang it, do your best to make ‘em good ones!

I know you may not believe me – fear and uncertainty are powerful anti-motivators if that makes sense - but it’s important that you try. 

Markets crash — but the world doesn’t end.
 

They recover.
 

Then they grow.
 

Over and over. 

I took a quick spin through the history books that may help establish some perspective and, hopefully, some confidence, too. 

Here are 10 historic market crashes over the past 679 years that make what’s happening now look like a cakewalk… along with what happened afterward. 

1. The Florentine Banking Collapse (1345) 

Medieval Europe's financial system collapsed when major banks like Bardi and Peruzzi failed.
But: Trade, industry, and the Renaissance itself followed. Florence became one of the richest cities in Europe — and investment in art, architecture, and commerce exploded.
 

2. The Dutch Tulip Bubble (1637) 

Tulip prices fell 99% in days.
But: The Dutch economy recovered fast, and Amsterdam became a global financial powerhouse, eventually creating the first stock exchange and modern banking practices. 

3. South Sea Bubble (1720) 

British investors were ruined when shares of the South Sea Company crashed 90%.
But: The British government reformed financial laws, restored confidence, and by the late 1700s, Britain entered the Industrial Revolution, unleashing centuries of growth.
 

4. Panic of 1873 (The Long Depression) 

Stock markets collapsed across Europe and America; 10-year global downturn followed.
But: It set the stage for the Second Industrial Revolution — railroads, steel, and electricity dominated. By 1900, the U.S. had overtaken Britain economically.
 

5. The Great Depression (1929–1932) 

Dow fell ~89%; 25% unemployment.
But: Those who bought in 1932 saw returns over 1,000% by 1954. America emerged as a global superpower and ushered in decades of innovation, growth, and middle-class expansion.  

6. World War II & Post-War Boom (1939–1945) 

Markets stumbled during global war, rationing, and fear.
But: Post-war recovery fueled the Golden Age of Capitalism — GDP growth, homeownership, and the S&P 500 rose 500%+ from 1942 to 1962. 

7. Black Monday (October 1987) 

Dow crashed 22.6% — in a single day.
But: The market recovered within 2 years, and the 1990s became one of the strongest bull markets in U.S. history, fueled by tech, globalization, and the internet.
 

8. Dot-Com Bust (2000–2002) 

NASDAQ lost 78%; tech stocks destroyed.
But: The survivors — Amazon, Apple, Microsoft, Nvidia — became $1T+ juggernauts. Investors who bought then are sitting on 10,000%+ returns today.
  

9. Global Financial Crisis (2008–2009) 

Lehman collapsed; S&P 500 down 57%.
But: From March 2009 to 2020, the S&P 500 returned ~400%. Investors who held or bought were richly rewarded.
  

10. COVID Crash (March 2020) 

Fastest 30% drop in history.
But: The S&P 500 doubled within 17 months. Tech soared. Remote work, digital payments, biotech, and AI entered hypergrowth.
 

 And the point of all this? 

Focus on what you can control – like buying great companies that have been put on sale -  rather than worrying about what you can’t – tariffs and geopolitics. 

History favours the bold, not the fearful. 

Investors who stay the course – even when they don’t want to and even if doing so seems to be a bad idea - tend to reap the rewards. 

Bottom Line 

Down markets are not something to fear if you’ve done your homework ahead of time. 

Why? 

Again, history shows very clearly that… 

• Stocks getting hit the hardest often bounce back fastest. 
• Great companies making great products tend to produce great results over time! 

As always, let’s MAKE it a great day and a great week.  

You got this – I promise!  

Keith 😀 

PS: If you’re an OBAer, keep an eye on your email for specifics on what to do next, which stocks to buy first and how to guard against any more selling. And if you’d like to be a part of the OBA Family and know which stocks will help you do that best, I’ll be here.