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How to Rebuild Your Portfolio After a Crash

Every portfolio crash feels uniquely terrible while you are sitting in the middle of it. Your screen is red. Your stomach is doing that thing. You start doing mental math on how many more years you will have to work. And then, somewhere between the third glass of cheap wine and the fifth doom-scroll through financial Twitter, you start making decisions. Bad ones. The kind you will regret for decades. I know this because I have been there, and because the math on regret compounds just as reliably as the math on returns.

What Bank Failures Teach Us About Risk

Banks are strange businesses. They take your money, lend most of it to strangers, keep a thin slice as reserve, and then promise you can have it all back whenever you want. This works perfectly – until it does not. And when it does not, the results are spectacular in the worst possible way. In 2023 alone, Silicon Valley Bank, Signature Bank, and First Republic collapsed in a matter of days. Credit Suisse, a 167-year-old institution, was forced into a shotgun merger. These were not small-town banks run by amateurs. They had risk committees, chief risk officers, and thick binders of regulatory compliance. None of it mattered when the fundamental trust broke down. If you invest in bank stocks – or simply keep your money in a bank – understanding why banks fail is not optional. It is basic financial literacy.

The Psychology of Market Panic: Why We Sell Low

Here is a fact that should bother you deeply. The average equity fund returned roughly 10% annually over the past 30 years. The average equity fund investor earned about 6%. That 4% gap is not fees. It is not taxes. It is panic. It is you – and me, and everyone with a brokerage account – selling at exactly the wrong moment because our brains are running software designed for escaping predators, not for holding index funds through a 30% drawdown. We are, in the most literal neurological sense, wired to destroy our own investment returns. And in 2025, with real-time portfolio apps buzzing in our pockets and social media turning every market dip into a five-alarm emergency, that wiring has never been more dangerous.

How to Buy Stocks During a Market Crash

Everybody knows you should buy when stocks are cheap. It is the oldest advice in investing, repeated so often it has become wallpaper. And yet, when stocks actually become cheap – when the S&P 500 is down 30% and your brokerage account looks like a crime scene – almost nobody does it. In March 2020, you could buy Apple for $57 split-adjusted. Microsoft for $135. The entire market was on clearance. And most people were selling, not buying. Not because they are stupid, but because buying stocks while the financial world is visibly on fire goes against every survival instinct humans have. Your portfolio is bleeding, the news is catastrophic, and some part of your lizard brain is convinced that this time it really is different.

What Actually Causes Financial Crises

Every financial crisis feels like a surprise. Every single one. And then, six months later, everyone says “it was obvious.” The 2008 meltdown, the 2020 COVID crash, the 2023 banking scare – each time, the post-mortems reveal the same ingredients that have been causing financial disasters since the Dutch tulip bubble. The recipe has not changed in 400 years. What changes is the packaging. So let us unpack the recipe, because understanding it is the single most useful thing you can do for your portfolio before the next crisis arrives. And it will arrive.

Credit Markets and Systemic Risk Explained Simply

Credit is the oxygen of the modern economy. Every business loan, every mortgage, every corporate bond – it all flows through credit markets. When credit expands, economies grow, companies hire, and asset prices rise. When credit contracts, the opposite happens, and it happens fast. The problem is that most investors do not think about credit markets until something breaks. And by the time something breaks, it is usually too late to do much about it. If you want to understand why financial crises happen and how to see them coming, you need to understand credit.

How to Spot a Market Bubble Before It Pops

Every market bubble looks obvious in hindsight. Housing in 2008 – of course those no-documentation mortgages were insane. Dot-com in 2000 – obviously a sock puppet cannot be worth a billion dollars. Crypto in 2021 – clearly a JPEG of an ape was not a retirement plan. But here is the uncomfortable truth: when you are inside the bubble, it does not feel like a bubble. It feels like the future. It feels like you are the smart one for getting in early and everyone else is the dinosaur. This is exactly what makes bubbles so dangerous and so predictable. The mechanics are always the same. Only the names change.

PascalFi

PascalFi explores the intersection of quantitative methods and practical investing. Named after Blaise Pascal, the mathematician who laid the groundwork for probability theory, this blog applies data-driven thinking to investment decisions. The art …

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