90-Day Market Crash Rule

A framework for handling market crashes and avoiding emotional decision-making, based on Shaan Puri's experience and lessons learned.

Core Philosophy

• Distinguish between reacting (emotional) vs responding (logical)
• Take simple ideas seriously and stick to predetermined plans
• Avoid changing strategy just because markets crash

The Decision Framework

1. Assess Existential Risk

• First question: "Is the wolf at the door?"
• Determine if there's a genuine crisis threatening survival
• Only change course if truly facing existential threat

2. If No Crisis Exists:

• Do absolutely nothing for 30-90 days
• Let emotions cool off
• Wait to see where things land
• Stick to original strategic plans

Common Mistakes to Avoid

• Making decisions based on:
  • Fear or greed
  • Hot tips from family "experts"
  • Market timing attempts
  • Fancy-sounding terms you don't fully understand
• Throwing out long-term plans due to short-term market movements
• Overreacting to market news and commentary

Better Decision Making Process

• Write down argument for and against decisions
• Let emotions settle before making choices
• Make decisions based on logical rationale that can be documented
• Focus on predetermined strategic shifts rather than reactive changes
• Evaluate counterarguments before taking action

Key Insight

• Most poor decisions come from reacting vs responding
• Reaction = Making decisions in the moment based on emotion
• Response = Making decisions after emotions cool, based on logical rationale