The stock market is crashing: panic or opportunity?

The past week has been very bad in the American markets, and also in the global markets, although this hasn't surprised anyone. 2025 is one of the best years for the stock market since the 2008 crisis, and it's normal that corrections will occur at some point. It's often said that declines are healthy because they allow for a more solid upward trend.

In these situations, how should we act? Above all, we mustn't let our emotions guide us. Market corrections are often buying opportunities, so we must avoid panic. The worst thing we can do is sell out of fear. There's actually an index that measures investor emotions, ranging from panic to euphoria. In theory, we should buy when there's panic and sell when there's euphoria, but we often do the opposite, letting our impulses get the better of us. In the medium and long term, the index works well.

What if it keeps falling? That's probably what many are thinking right now, and it could happen. It's impossible to know when a market will stop falling and start rising again; if someone says they know, it's best not to believe them. Time is a key factor. In 2025, the months of January through March were clearly bearish, and yet, since then, the gains have been very significant. November will be a month of losses, yes, but as long as the corrections are controlled, it's very likely that in a few months the indices will reach new highs.

Ultimately, investing is an exercise in rationality. This means making decisions based on data, time horizon, and strategy, not on impulses or dramatic headlines. Rationality involves accepting that there will be uncomfortable moments, but also trusting the process and maintaining discipline. If the recent market declines are keeping you up at night, you should probably invest in something other than the stock market.