What a More Than 2,000 Point Drop Really Means—And Why Panic Isn't a Strategy
“I’m thinking of selling some of my portfolio.” My friend at brunch on Saturday.
Me: “Unless you need the cash, don’t. Otherwise, you’re locking in your losses.”
As you likely know, the Dow Jones fell 2,200 points or 5.5% on Friday, April 4, which was on top of Thursday’s drop of 1,679 or 4%.
According to Morningstar:
“Roughly $11.1 trillion has been wiped away from the U.S. stock market since Jan. 17. Some $6.6 trillion of that occurred on Thursday and Friday alone, the largest two-day wipeout of shareholder value on record.” (Figures from Dow Jones data.)
The stock market’s decline—what it means, and what effect it may have on our businesses and lives, short- and long-term—has been the focus of almost every conversation I’ve had since last Thursday, personally and professionally.
If you’re feeling nervous, scared, and uncertain, you’re not alone. So are many others.
And look, I’m feeling all the things right along with you. The market tumbled, and so did the market value of my portfolio…and my stomach.
Context Calms Panic!
It is unsettling, for sure. But I also have context.
Remember, I saw the stock market crash of October 19, 1987—aka “Black Monday”—up close. It is what ignited my curiosity about behavioral finance and behavioral economics.
Yes, last Thursday and Friday’s drop of nearly 4,000-points is a big deal. But not all point drops carry the same weight.
Let’s put it in perspective:
In 1987, the Dow dropped 508 points—22.6%.
In 1929, it dropped 11%, though the index was in the low hundreds.
On Thursday, April 3, 2025, the Dow opened at 40,986.
My point isn’t to throw numbers at you or to dismiss your concern.
It’s to offer a gentle reminder:
Panic often stems from misunderstanding the scale.
Yes, news outlets and social media feeds are full of dramatic headlines—and yes, the geopolitical tensions that contributed to the drop are real and concerning.
But remember: a 5% dip in today’s market isn’t unprecedented or necessarily a red flag. It’s not the same as a 22% crash, and it’s not the beginning of the end.
And here's something else history teaches us:
Markets have always rebounded. Sometimes quickly (like in 2020 after COVID-19), sometimes slowly (like after 2008). But over time, the trajectory of a well-diversified portfolio has been upward.
What I learned from 1987, as well as the 2008 crash, is that those who stayed the course fared well. Those who sold out of panic, locked in their losses.
Practical Wisdom When Emotions Run High
If ever there was a moment to illustrate the relationship between emotions and money, this is it:
Money is emotional!
And those emotions are heightened right now—layered with concerns about inflation, spending habits, and how all of this will affect your business or profession.
Here’s what I’ve learned from past downturns…what I’m encouraging friends, clients, and colleagues to consider… and what I’m reminding myself when I get caught up in the headlines:
Volatility isn’t new. It’s the price you and I pay for long-term growth.
Don’t let short-term noise override long-term plans. This assumes you have a long-term plan—and a process that allows you to acknowledge the noise without letting it drive your next move.
Don’t panic sell. (Easier said than done, I know. For example, last Fall I was tempted to sell when the market was up—I wanted to “lock in” my gains. But a nudge from my friend Niraj reminded me of what I knew to be true, and I stayed the course. For context: There have only been nine down years in the last 40.)
Buy, if you can: If you don’t need to conserve cash, now may be a good time to invest more. Think of it as buying stocks, ETFs, or mutual funds…on sale.
(If you'd like help sorting through what this means for you, I’m offering Financial Clarity Sessions—more on that below.)
Your Goals Are Still Your Strongest Assets
The market was down last Thursday and Friday. We don’t know what will happen on Monday.
But, here’s what we do know:
Your goals, your discipline, and your time horizon are still your strongest assets.
This goes back to what I said a few weeks ago:
YOU are the most valuable tool you’ll ever need.
So, focus on what you can control:
Your choices.
Your plan.
Your support system.
Your resiliency
Because, yes, last week’s stock market drop is real. But your response— to this or any disruption—is yours.
How are you responding?
How are you planning to respond in the days ahead?
You’re not alone in trying to figure out next steps—even if that next step is simply confirming you’ll do nothing (which, by the way, is still a choice).
Right now, we’re all navigating how macro events impact us directly—and managing the feelings those events surface.
Including me.
Thankfully, I have my educational background (MBA in Finance), many years in the industry, hands-on experience managing money, and a trusted crew to help me stay steady in the face of even greater uncertainty.
So here’s the final question I’ll leave you with:
Who is part of your trusted crew?
Who can you call when panic sets in?
Who helps you respond strategically instead of just emotionally?
If the market’s recent rollercoaster has you feeling a little queasy, I’ve created something that might help:
Beyond the Panic: A Financial Clarity Session
A one-on-one 30-minute conversation to help you re-center, get grounded, and respond from a place of clarity—not fear.
Let me know if you’d like the details by contacting me and my team today.
Of course, if you’re interested in a full coaching engagement, there are three (3) coaching spots available to start this month!
About Jacquette
I love to ask questions and spark aha moments. I love to talk about why success with money is about more than just the numbers, and how the cultural impact on the intersection of money, business, and life matters–A LOT! And, I really hope I help people feel seen, heard, and not judged—especially since money is emotional and personal.
