Becker Private Equity & Business Podcast
Don’t Freak Out When Your Stocks Drop 3-1-25
Sat, 01 Mar 2025
In this episode, Scott Becker discusses the importance of staying level-headed during stock market downturns.
Chapter 1: What should you do when your stocks drop?
Chapter 2: How can an emergency fund help during market downturns?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion is don't freak out when your stocks drop. So here's the discussion. And again, I'm a big believer that it's a lot easier not to freak out if you've got a great emergency fund. And you also understand the allocation of assets. You're not overweighted towards equities versus bonds versus everything else.
Chapter 3: What lessons can be learned from Palantir's stock performance?
But again, don't freak out. So these lessons really comes out of Palantir. And again, many of these things that I use for discussion here come out of personal experience. So Palantir over the last week to two weeks, it just got crushed. And that could be enough for someone like me to freak out and pull the trigger and sell my Palantir on the dip because at the end of the day,
Chapter 4: How does being an anxious investor affect decision-making?
I am a little bit of an anxious investor, although I've done a great job of maintaining my allocation of assets at a level that works for me. So I don't freak out like I used to at one time, but I am an anxious investor. So when you're an anxious investor, Sometimes you have to go back to the facts. And so here are some of the facts on Palantir.
At the end of the day, it's still up year-to-date about 11%. It's up over the last year 243%. Now, again, I didn't get the whole benefit of that 243% because I invested somewhere in between. Yes, it's down this week 17%, which is a disaster and enough to scare people like me who are nervous investors. But that stated, you have to look at this entire context that don't freak out.
It's down 70 percent this week, but it's only it's up still 10 percent year to date toward 40 percent over the last year. So it really moves to how do you look at it long term versus short term? And trying to just sort of breathe and hold it and not go overboard with making quick actions on it. So thank you for listening to the Becker Private Equity and Business Podcast.
Thank you very much for joining us.