The Market Rebounded, But Did You?

The Fear Came Fast

The market crashed when Trump’s tariff comments shook investor confidence. We all felt it. Charts turned red, headlines screamed “collapse,” and portfolios shrank overnight.

But something unusual followed: a swift rebound. Major indices climbed again, and to many, it seemed as though the fear had never happened.

Some Portfolios Recovered. Others Didn’t.

Let’s be honest: not everyone came out okay. Even if the Nasdaq (QQQ) almost recovered its all-time high, that doesn’t mean all investors did.

Take TQQQ, the 3x leveraged ETF. While QQQ moved from $540.81 (Feb 19) to $531.36 (Jun 12), nearly closing the gap, TQQQ dropped from $91.12 to $74.78 in the same period. That’s still a long way down.

It Depends on What You Did in the Fear

Maybe you froze. Maybe you had too much debt, and had to sell at the worst time. Maybe you took the opportunity to invest more — and now you’re ahead. Or maybe you caught a specific stock bounce that outperformed the market.

Whatever your outcome, one question matters most now: What was your principle? Did you follow it when fear arrived?

How to Invest Through Fear

John Bogle’s words echo through every crisis: “Stay the course.” But that doesn’t mean doing nothing. It means having a course worth staying on.

If fear hits and you don’t have cash, you’re stuck. If you invested with too much leverage — whether by borrowing or using leveraged ETFs — you may not recover.

And if you overreacted? You might’ve missed the rebound entirely.

What You Can Do Now

  • Review your cash allocation. Are you prepared for another shock?
  • If you use leverage, do you have a clear system and mental framework for it?
  • If you don’t, stick to broad-market ETFs or large-cap stocks — and consider dollar-cost averaging instead of lump-sum investing.

Even long-term investors must occasionally rebalance. If your cash portion has shrunk too much, pause. Don’t let fear dominate, but don’t let blind conviction do it either.

I hope this note brings a little more clarity, calm, and richness to your life.

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