Dave Ramsey’s 2008 Playbook for Surviving a Market Crash Resurfaces: Invest ‘Because of Spiritual Guidance and Intellect, Not Because of Fear’

During periods of extreme market volatility, investors tend to err on the side of caution. Rather than speculate on near- or mid-term market prospects, many sell first and then reassess the situation on an ongoing basis. Too often, however, investors make that decision after a substantial portion of the pain has already set in. This means they might lose a significant portion of their portfolio by selling after a large market downturn, then wait to buy until markets have already substantially recovered.

This is almost certainly the case for tens of thousands of investors who tried trading the tariff uncertainty over the past several weeks. Fears of tariffs, recessions, the national debt, and more have sent markets into an unprecedented period of volatility. Between April 2 and April 8, the S&P 500 Index ($SPX) dropped over 12%. After some tariff rollbacks on April 9, markets rallied 10.5% in just a few hours. While every investor is in a different boat regarding how they traded the event, there are certainly some unhappy investors who sold the news but failed to get back in until the recovery was already underway.

In a recently resurfaced viral clip shared on the official Dave Ramsey TikTok page, this is the precise scenario Dave Ramsey advises investors to avoid. The clip addressed a concerned caller who had over $2 million in the markets during the 2008 financial crisis. Ramsey, addressing the caller’s concerns, gave some frank but simple advice, saying, “The market has already dropped 30-something percent since about this time last year.” He continued, “When will it come back? I don’t know. Will it come back? I do know.” Meaning, historically, the markets always recover and then continue to grow past their previous highs.

While the markets ultimately continued to decline after that call — reaching a drop of over 50% from the previous 2007 highs to the lowest point of 2009 — Ramsey was correct. The S&P 500 has returned over 600% since the worst of 2009. Had the caller sold and waited, or attempted to continue predicting the market, his losses might have been much worse than even those experienced during the 2009 crash.

What to Do During Market Volatility

So, for those wondering whether now is the time to sell, Dave Ramsey has some simple advice: “I think you’re making a huge mistake. I would try to talk you down off that ledge.” This isn’t just advice from a market spectator either. Ramsey has an estimated net worth of $200 million and investments across stocks and real estate. When asked if he would hold during volatile times like 2008, Ramsey said, “I’m not panicking. [Holding] is what I would do, and what I am doing.”

Ramsey did acknowledge, however, that everyone’s goals and finances are different. There’s certainly not a one-size-fits-all approach to investing. “I’ve shared what I know and what I am personally doing, but that is your money and you’ve worked your whole life for it. So… pray about it and get a peace of mind about it,” Ramsey said. He concluded by saying, “Make a decision because of spiritual guidance and because of intellect, not because of fear.”