Bad news can ruin a morning faster than a burnt cup of coffee. A headline flashes across the screen—“The stock market tumbles!”—and suddenly, that calm moment turns into a rush of anxiety. If he is an American living in Israel, that uneasy feeling can hit even harder. His savings might be sitting in U.S. brokerage or I.R.A. accounts, and when markets swing wildly, it’s like watching a storm roll in from across the ocean. He can see the lightning and hear the thunder but can’t quite tell if it will strike close to home.
Here’s what you should know about those storms: a bear market isn’t a catastrophe, and it doesn’t automatically spell disaster for long-term investors. It simply describes a period when stock prices have fallen around 20% or more from recent highs. That drop can feel scary, but it’s not unusual. Market cycles—like seasons—come and go. Winter may linger longer than anyone likes, but spring almost always returns, though never on a set schedule. History suggests that patience often helps investors ride out the downturns, but of course, there’s no guarantee that every recovery looks the same or arrives on time.
That’s why a calm, prepared approach tends to serve investors better than reacting on impulse. Having a cash reserve can make a real difference, helping him cover living expenses without selling investments when prices are low. Understanding what he actually owns—the companies, funds, or bonds inside the portfolio—can also make volatility less intimidating. It’s easier to stay grounded when he remembers that markets represent real businesses with real ups and downs. And while steady, automated investing—often called dollar-cost averaging—can reduce the emotional roller coaster, it’s not foolproof. Prices can fall further before they rise again, and there’s always the chance that short-term timing affects results. The point is not perfection but consistency.
Emotions, however, don’t follow spreadsheets. When the market dips, fear has a way of hijacking logic. Selling during a downturn might feel safe in the moment, but it can make long-term recovery harder. On the flip side, charging in too quickly after a drop can be just as risky. That’s where balance comes in. Rather than trying to predict when things will calm down, it’s often wiser to focus on staying diversified and giving investments room to recover—however long that may take.
It also helps to remember that downturns sometimes create opportunity. When prices fall, certain assets may become more attractively priced, though not every dip signals a bargain. Like shopping at the shuk at closing time, the best deals require discernment—and a bit of courage. Still, recognizing that volatility can occasionally open doors reminds an investor that fear isn’t the only response to falling markets.
Of course, even the best strategies come with uncertainty. Currencies fluctuate, economies shift, and no investment path is risk-free. What an investor can control are his choices: keeping a solid cash buffer, staying diversified, reviewing his plan regularly, and maintaining a long-term mindset. That combination doesn’t promise success, but it can help improve his odds of reaching his goals.
Note: This article is for educational purposes only and is not intended as financial, legal, or tax advice. Every investor’s situation is unique, and professional guidance is recommended before making major financial decisions.
If you would like to explore how to manage your U.S. accounts while living in Israel—and create a plan designed to handle both calm and stormy markets—you can schedule a free Cross-Border Financial Evaluation at www.profile-financial.com/call. It’s a chance to talk through your goals, assess your situation, and see what steps could help build more stability and confidence in your financial future.
