Don't Panic. This Happens Every February.
Why the market dipped in February 2026 and why you probably shouldn't worry about it.
Dear Investors.
Zee here. This is an extra newsletter to allay market fears.
So.. the market went down. What happened?
If you checked your investment account in February 2026 and saw a sea of red, you’re not alone. Stock prices dropped, the news was full of scary headlines, and it probably felt like something was seriously wrong.
But here’s the thing: nothing unusual actually happened.
The market going down in February is about as surprising as it being cold in January. It almost always does this and history shows it almost always recovers.
Let’s break down what really went on, using real data to put your mind at ease.
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#1 February is always the market’s worst month
Researchers have looked at stock market returns going all the way back to 1950. Whether you look at the last 75 years, the last 20 years, or just the last 10 years, February is one of the weakest month on the calendar.
So when the market dropped in February 2026, it wasn’t because of some terrible new crisis. It was just... February being February.
#2 January actually gave us a good sign for 2026
Here’s something encouraging that most people missed while they were panicking about February.
January 2026 ended up 1.4%. That might sound small, but researchers found something fascinating: when January finishes with a gain between 0% and 2%, the rest of the year tends to be really strong.
They looked at every year since 1950 where this happened, years like 1955, 1998, 2017, and 2024. Here’s what they found:
✅ The market finished the year higher 12 out of 13 times
✅ The average gain over those 11 remaining months was +12%
✅ That’s better than the average year, which gains about +8.2%
In other words: January quietly told us 2026 was likely going to be a good year. February’s bad mood doesn’t change that signal.
#3 The market has survived far worse than this
When you’re new to investing, a down month can feel like the end of the world. But zoom out and look at what the stock market has been through over the past 125 years.
The Dow Jones one of the most widely tracked measures of the US stock market has survived:
• Two World Wars
• The Great Depression (when stocks lost nearly 90% of their value)
• Multiple global pandemics, including the Spanish Flu and COVID-19
• The 1987 crash, when the market fell 22% in a single day
• The 2008 Financial Crisis
• 9/11
• Countless political scandals and geopolitical conflicts
And through every single one of those terrifying moments, the long-term trend of the stock market has been one thing: upward.
The market started the 1900s around 60 points. Today it’s above 40,000. Every crisis you’ve ever read about in a history book? The market absorbed it and kept going.
February 2026’s dip, driven by tariff fears, political noise, and economic uncertainty, will one day look like a tiny blip on that same long chart.
Bottom line
Fortunes are built during the down market and collected in the up market — Jason Calacanis
So what should you do?
(a) Own businesses, not headlines
(b) Buy when fear is high but company’s fundamental are strong
(c) Reduce when prices lose touch with underlying value
(d) Grab opportunities when prices are good
Disclaimer: All information here is for educational purposes only. This is not financial advice. Please do your own research and speak with a licensed advisor before making any investment decisions. Past performance is not indicative of future returns. How we invest may not suit your investment goals and risk management profile.