Here's your Forbes Daily Briefing for Friday, March 14th. Today on Forbes, calming advice for a chaotic

stock market. While the last three weeks have been punishing for the stock market, veteran

wealth managers are sounding a similar refrain for long-term investors. Don't panic. It can be difficult advice to heed when alarming

headlines are regularly flooding the news. Two days after the S&P 500 index hit its all-time high

on February 19th, hedge fund billionaire Steve Cohen made a prescient prediction that he wouldn't

be surprised to see a, quote,

significant correction in the stock market, calling tariffs in additional tax.

On Tuesday this past week, J.P. Morgan economists raised their recession risk forecast for this year

to 40% from 30%. The S&P 500 is down 9% from its high and seems destined to fall further.

But history suggests changes in sentiment often happen much faster than investors expect.

Just last year, when stocks fell 8.5% over three weeks in July and August, those losses were

erased within a month. The same is true of the S&P 500's last 10% correction, which took

place from July to October 2023. In fact, David Donabedian, co-chief investment officer of

CIBBC Private Wealth U.S., which manages $84 billion in assets,

says his firm researched, quote, true crises, far more consequential than the current self-inflicted declines fueled by tariffs,

shocks to the system like outbreaks of war or the onset of COVID-19.

Donna Bedion says, quote,

What you find is that about two-thirds of the time, the S&P 500 has recovered all that it lost

after the shock in a month.

The punchline is don't do knee-jerk selling, and we've certainly had some of those

conversations in the last week or so. The primary culprit. The punchline is don't do knee-jerk selling, and we've certainly had some of those conversations

in the last week or so.

...