Fri Dec 26 14:50:00 UTC 2025: Here’s a summary and a news article rewrite of the provided text:
Summary:
Ben Carlson of “A Wealth of Common Sense” addresses a reader’s question about how to view a potential market crash (20-30%). He frames the question as whether such a decline could be seen as “time travel” back to earlier, more attractive buying opportunities. Carlson acknowledges that a market crash is never pleasant, and the psychological impact can be significant. He points out that a 30-50% drop would take the market back to levels seen in 2020-2024. While such losses wouldn’t feel good, he argues that dollar-cost averaging during a crash can be beneficial in the long run, if your personal circumstances allow for it (i.e., you maintain employment). He draws a parallel to the 2008 financial crisis, highlighting that those who kept investing during the downturn ultimately benefited, while those who lost their jobs faced more severe setbacks. He concludes that while a market correction can offer long-term opportunities, it requires financial stability and psychological resilience.
News Article:
Is a Market Crash a Time-Traveling Opportunity? Financial Expert Weighs In
December 25, 2025 – As economic uncertainty looms, many investors are bracing for a potential market downturn. Ben Carlson, author of the popular finance blog “A Wealth of Common Sense,” tackled the anxieties surrounding a possible market correction in a recent post.
Responding to a reader’s query about viewing a significant market drop as a “time travel” opportunity back to lower stock prices, Carlson acknowledged the emotional challenges such a scenario presents. “A 30% crash would make it feel like a 40% downturn is the next stop,” Carlson wrote. “A 40% drubbing would take the market back to May 2023.”
However, he argues that for investors with a long-term horizon and the financial stability to continue investing, a market crash can indeed present a compelling opportunity. Drawing on the experience of the 2008 financial crisis, Carlson noted that those who maintained their employment and continued investing in their 401(k)s at lower prices reaped significant rewards in the years that followed.
“Investing during a market crash depends on your intestinal fortitude but also your circumstances,” Carlson cautions. He highlights that a job loss or other personal financial crisis can negate the potential benefits of buying during a downturn.
Carlson’s analysis suggests that while the prospect of a market crash is never welcome, viewing it as a chance to buy low can be a sound strategy if investors are both financially secure and emotionally prepared to weather the storm. He concludes that it is important to remember that losses of 30-50% in magnitude would not feel great.
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