The truth about stock market is that it is a perfect example of entropy theory --- there is "always" something that makes people think sky is falling.
Human nature likes certainty and "in control", but with so many random news, events, geopolictical activities, sky seems that it will fall everyday, despite the fact that sun always rises up next day.
Conclusion: Do not live in "fear", embrace the opportunity that God has given us in this wonderful country.
Here is the list of "significant" crisis and events since 1985. They all seem like a doomsday event at the time, yet, stock market is at all time high today.
1. Black Monday (1987): Market crash on October 19, 1987, Dow Jones Industrial Average fell by 22% in one day
2: Early 1990s Recession (1991): Tight monetary policy and the Gulf War causing oil price spikes, recession with rising unemployment and slow GDP growth.
3: Asian Financial Crisis (1997): Collapse of currency values in Asia due to overleveraged economies, high foreign debt, and speculative financial practices. Casuing global financial market volatility
4: Russian Financial Crisis (1998): Russia defaulted on its debt and devalued its currency due to falling oil prices and political instability, leading to the collapse of hedge fund Long-Term Capital Management (LTCM).
5: Dot-Com Bubble Burst (2000): Excessive speculation in tech stocks, leading to inflated valuations that crashed when profitability failed to materialize. Nasdaq drop by 80%
6: 9/11 Terrorist Attacks (2001): Terrorist attacks on the World Trade Center and Pentagon, causing New York Stock Exchange to pause trading for one entire week
7: Global Financial Crisis (2008-2009): Collapse of subprime mortgage crisis, Lehman Brothers' bankruptcy, and a systemic failure of financial institutions. Resulting in deep global recession, massive bank bailouts, and widespread economic hardship with high unemployment.
8: European Sovereign Debt Crisis (2010-2011): High sovereign debt levels in European countries, especially Greece, leading to fears of global economic stagnation
9: U.S.-China Trade War (2018-2019): Escalation of tariffs between the U.S. and China, affecting global trade and business confidence. Raised concern of global econmic slow down and job losses in US
10. COVID-19 Pandemic (2020): Global health crisis leading to lockdowns, supply chain disruptions, and a sharp economic contraction. Resulting in deepest global recession since World War II, with entire world on standstill
11. 2022-2023 Inflation and Interest Rate Hikes: Post-pandemic supply chain disruptions, energy price spikes from the Russia-Ukraine war, and rapid rate hikes by central banks to combat inflation.
