“Be fearful when people are greedy, and greedy when others are fearful” – Warren Buffett
The press and financial media will be fear mongering over the next week. In times of market panic, its important to stay calm and see the forest for the trees. The recent capitulation due to Trumps tariff policies triggering a trade war, have seen the major indices in the USA fall around 20%
So should you buy, hold or sell? First things first, lets look at the move in a historical context
over the last 25 years, the US market has had 6 significant pullbacks, 2 of which were genuine “Black Swans”
On average the S&P500 has bottomed 34% from the high, and taken 285 days to make the low (Sept-2025).
Removing the black swan events (COVID and the GFC) the figures are slightly better with the low being 28% from the record high, and 20 days less (Aug 2025)
However, as the charts below show, the 1-year bounce from the lows are significant and all MPC clients are in high levels of cash, cash equivalents, gold and defensive names, so we need to plan our re-entry
S&P500 Market fall statistics
ASX200 plan
The Plan
Dollar Cost Averaging (buying small amounts at a time) will be the key part of our re-entry strategy, likely split into 4-5 clips.
for example:
- if you intend to re-enter the market for $100,000, we will buy 5x $20,000 clips over the coming weeks/months
- We will start with the Index ETFs
- Then we will look to buy defensive names from sectors like, utilities, healthcare, consumer staples & Real Estate) (Woolworths, CSL, APA , GMG)
- Then we will look to buy further up the risk scale with our high conviction stocks
Buying order in terms of preference
Above all, DONT HESITATE TO CALL US, this is what we are here for
If you have any questions, either send your questions in the email box below, or call your broker
ASK A QUESTION
GENERAL ADVICE WARNING:
Recommendations and reports managed and presented by MPC Markets Pty Ltd (ABN 33 668 234 562), as a Corporate Authorised Representative of LeMessurier Securities Pty Ltd (ABN 43 111 931 849) (LemSec), holder of Australian Financial Services Licence No. 296877, offers insights and analyses formulated in good faith and
Opinions and recommendations made by MPC Markets are GENERAL ADVICE ONLY and DO NOT TAKE INTO ACCOUNT YOUR PERSONAL CIRCUMSTANCES, always consult a financial professional before making any decisions.