Smart Moves I Made During the Great Financial Crisis

So, you want to start investing—but with the market down, you’re not sure if now is the right time.

I’ve been there. In fact, I started investing in 2007… right before the 2008 financial crisis.

Let me share some of the smart (and not-so-smart) moves I made back then, and what I’ve learned that might help you navigate today’s market with more confidence.

1. I Invested Right Before a Crash—and Learned a Lot

Back in 2007, I put a sizable chunk of money into the market. Within months, the financial crisis hit and my portfolio tanked. It was painful to watch, and I definitely heard a few "I told you so’s." But I didn’t sell. I held on—and over time, the market recovered, and I made a significant long-term gain.

2. Lump Sum Investing Wasn’t the Best Move

One of my early mistakes was investing a large amount all at once. If I had spaced it out over time (a strategy called dollar-cost averaging), I could have smoothed out the impact of the downturn. Still, holding on through the dip taught me valuable lessons about long-term investing.

3. Emotional Strength Is Just as Important as Financial Know-How

It's one thing to click “buy” on a stock or ETF. It's another thing entirely to see your investment drop 20–30% and resist the urge to sell. The real test isn’t your ability to invest—it’s your ability to not panic.

4. Ask Yourself: Can You Handle the Emotional Roller Coaster?

Before jumping in, ask: Can I watch my portfolio drop and not hit the sell button? If the answer is no, you might want to wait—or invest in something less volatile.

5. Downturns = Discounts (If You Can Handle Them)

Buying during a market dip can be incredibly smart. Think of it as buying stocks on sale. But it only works if you can ride out the storm. The market will recover—but not always on your timeline.

6. Don’t Only Buy When Everyone’s Euphoric

Too many people wait until the market is soaring and headlines are glowing to start investing. That’s when stocks are likely overvalued. Then, they get hit with a correction and wonder what went wrong.

7. Update Your Strategy as the World Changes

Things like tariffs, geopolitical shifts, and economic policy can change the investment landscape. What looked like a great ETF last month might not be the best choice today. Stay informed and adjust as needed.

8. Trust in the Long-Term Trends

Historically, the stock market has returned an average of 10% annually over the past century. Yes, there are ups and downs, but if you're in it for the long haul, that kind of return can build serious wealth.

9. It’s Okay to Choose Safer Options

If you know you're not emotionally ready to invest in a volatile market, that’s okay. Consider a high-yield savings account (which may offer around 4–5% interest right now). The most important thing is sleeping soundly at night knowing your money is where it should be.

10. Personal Finance Is Personal

At the end of the day, your strategy should reflect your goals, temperament, and beliefs about money. There’s no one-size-fits-all answer. The mechanics of investing aren’t hard—it’s the mindset that’s tough.

Final Thoughts

If you’re just starting your investing journey, this might feel like the worst time. But it could actually be the best. Market downturns are painful in the short term but powerful in the long term—if you stay the course.

Whatever you choose, make sure it aligns with your financial goals and your emotional resilience.

And remember: your journey is your own.

Until next time,

Dr Joanne Narae