Market Crashes (2025 Edition)

Stock prices reflect investors’ expectations about the future earnings and risk of the companies they invest in. When expectations or risk change, due to something like nonsensical sweeping tariffs, stock prices can change, and they can change quickly and dramatically.

Falling stock prices do not mean that the market is broken or that the world is ending; they are expected from time to time, and their inevitability should be built into every investment plan.
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