What do we do when the stock market goes down?

When we invest in the stock market we are taking a risk, and we are aware that we can lose money, but we never like to see it. In the last two months, most of the world's stock markets have been bearish, with the rare exception of the Spanish Ibex 35, which, due to the weight of banks, has been spared from the world's economic problems. Trump and his policies of fighting with everyone have caused instability in the markets.

At times like these, the most important thing is to stay calm. Emotions like fear make us rush into decision-making. Big investors buy when small investors are afraid and come when small investors are happy, that's how trends are formed. The important thing is to zoom out on the period and I'll give you a very extreme case: Tesla. Between November and December 2024 it rose by almost 100%, so far this year, it has fallen by almost 50%. In the last 6 months overall, it has risen by 20%.

Don't think that you always win in the stock market, you also lose. If not, think of companies like the disappeared Tierra in 2000, Zoom during the pandemic (it has lost 85% since then) or Telefónica (-80% historically), and they will surely never recover. To minimize these situations, the second most important piece of advice is diversification in solid companies. Investing in world leaders in their sector or in their competition in emerging markets is not the same. Leaders will always be less volatile, we will win more, but we will also lose less in market times like the current ones.

And finally, if you are worried, just wait. It doesn't have to happen again, but the first time Trump imposed tariffs, world stock markets also fell in the first few weeks to end up recovering and growing shortly after. Any trend always has lows and highs, the most important thing is that they are growing.