It’s April 7, 2025. My portfolio’s tumbling like a toddler on a sugar high. S&P 500’s down 8-10% from its 6,000 peak.
Nearly $5 trillion of stock market wealth vanished since February.
Trump’s tariffs have the Nasdaq plunging 20%.
In times like this, I look for history as an anchor.
Let’s contextualize the current moment by looking at 2022, the last big shock in the stock market.
I help investors manage their psychology, and mind their money.
2022 vs. 2025: the tale of two tumbles
In 2022, inflation hit 9%. The Fed played whack-a-mole with rates. Macro mayhem.
In 2025, it’s tariffs gone wild.10% on imports, 25% on neighbors. Tariffs Changing by the day.
Trade war roulette.
Comparing the catalysts, now let’s dive into the numbers.
How much did stocks slide?
- 2022: S&P 500 cratered 25.4%.
- 2025: S&P’s down 15%, year to date.
How long was the suffering?
- 2022: The stock market bled slowly for 9 months. The first half of the year was down 21%—the ugliest since 1970.
- 2025: 47 days so far characterized by sharp, stomach-churning drops. It’s not a marathon bleed yet, so let’s cross our fingers for how things play out over 3, 6, 9 and 12 months.
How were portfolios affected?
Looking at a 60/40 stock-bond portfolio…
- 2022: Lost 17%, the worst since the Depression.
- 2025: the same mix was down ~10%. Lighter bruise.
now, the opportunity…
Now, the fun part: 2022’s low—3,577—was a screaming deal.
If you bought then, you’re up 67% by February 2025’s 6,000 peak.
That’s the magic of a big stock market dip. Everyone’s freaking out, but the data whispers, “This is your shot.”
Since 1928, the S&P’s averaged 9.8% a year, crashes included.
Every red screen is a setup for green later.
Yes, 2025 feels like chaos so far.
- Could we hit 2022’s 25% drop (say, 4,500) if tariffs ignite a recession? Quite possible.
- Might the bleeding stop at 15% if things cool down? Maybe.
Butttt either way, 2025 so far is not exactly uncharted territory.
Let’s build wealth together.