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Finance · Episode 5
March 2020. The fastest market crash in history. 34% gone in 33 days. Trillions wiped from global markets. The investors who did nothing — who turned off the news and left their index funds completely alone — doubled their money within 18 months.
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In March 2020 the global stock market fell 34% in just 33 days — the fastest crash in recorded history. Millions of people panicked. They sold everything, locked in their losses and sat on cash waiting for the right moment to get back in. That moment never came — at least not in the way they expected. The market recovered fully within months and went on to reach all-time highs.
"The investors who did nothing — who turned off the news and left their index funds completely alone — doubled their money within 18 months."
It's not stupidity that makes people sell at the bottom. It's biology. Your brain processes financial loss in the same region it processes physical pain — and research shows that losing €1,000 feels roughly twice as painful as gaining €1,000 feels good. This asymmetry, called loss aversion, is the single most dangerous force in investing.
Every headline, every breaking news alert, every analyst appearing on television during a crash is optimised for one thing — attention. Fear generates attention. Panic generates clicks. None of it is designed to help you make better decisions. Understanding this doesn't make you immune to it, but it gives you a fighting chance.
Mike shares exactly what he did during the March 2020 crash — not what he wished he had done, but what he actually did — and the lesson it permanently burned into his investing philosophy. This is the episode he wished had existed before that crash happened.