Dan Bin said that the iron law of the US stock market has never changed.
Nearly every year brings a pullback of more than 10%, which is the norm of market operation, not the end of risk. Looking back over the past three years, In August 2024, the yen's rate hike triggered capital reflows, and US stocks adjusted accordingly; In March-April 2025, escalating trade frictions fueled panic sentiment and pushed indices lower; In February-March 2026, intensifying Middle East geopolitical conflicts stirred up market turbulence again. The three pullbacks had different triggers, yet jointly confirmed one fact: no major bull market can escape the baptism of volatility. Extending the time dimension, the S&P 500 index over decades has frequently experienced intra-year corrections exceeding 10%, yet long-term annualized returns remain solid. Most of these fluctuations stem from geopolitical conflicts, policy shifts, trade disputes and other short-term noise. While the impact appears intense, it has never shaken the core trend of industrial upgrading. Just as in the early days of the internet boom, bursting bubbles and tightening regulations occurred frequently, yet they ultimately could not stop the pace of technological revolution reshaping the world. Today's artificial intelligence era is replaying this historical trajectory. As a new round of productivity revolution, the process of AI technology implementation, industry penetration, and profit realization is destined to be accompanied by valuation disagreements and emotional fluctuations. Most investors fail by being swept up in short-term noise, panic selling during pullbacks, and chasing highs after recoveries, ultimately missing opportunities of the era. True long-term investing thrives in seeing through volatility to grasp the essence. There's no need to worry about annual routine pullbacks; instead, one should view them as opportunities to position in quality assets. Ignoring short-term disturbances and adhering to the core themes of the AI revolution—this steadfastness in resisting noise is the key to traversing cycles and capturing the dividends of the era. Great eras are never smooth sailing. Only by having conviction in the long term and adhering to value can one become the ultimate winner.
Dan Bin said that the iron law of the US stock market has never changed.
Nearly every year brings a pullback of more than 10%, which is the norm of market operation, not the end of risk.
Looking back over the past three years,
In August 2024, the yen's rate hike triggered capital reflows, and US stocks adjusted accordingly;
In March-April 2025, escalating trade frictions fueled panic sentiment and pushed indices lower; In February-March 2026, intensifying Middle East geopolitical conflicts stirred up market turbulence again.
The three pullbacks had different triggers, yet jointly confirmed one fact: no major bull market can escape the baptism of volatility.
Extending the time dimension, the S&P 500 index over decades has frequently experienced intra-year corrections exceeding 10%, yet long-term annualized returns remain solid.
Most of these fluctuations stem from geopolitical conflicts, policy shifts, trade disputes and other short-term noise. While the impact appears intense, it has never shaken the core trend of industrial upgrading. Just as in the early days of the internet boom, bursting bubbles and tightening regulations occurred frequently, yet they ultimately could not stop the pace of technological revolution reshaping the world.
Today's artificial intelligence era is replaying this historical trajectory. As a new round of productivity revolution, the process of AI technology implementation, industry penetration, and profit realization is destined to be accompanied by valuation disagreements and emotional fluctuations.
Most investors fail by being swept up in short-term noise, panic selling during pullbacks, and chasing highs after recoveries, ultimately missing opportunities of the era.
True long-term investing thrives in seeing through volatility to grasp the essence. There's no need to worry about annual routine pullbacks; instead, one should view them as opportunities to position in quality assets.
Ignoring short-term disturbances and adhering to the core themes of the AI revolution—this steadfastness in resisting noise is the key to traversing cycles and capturing the dividends of the era.
Great eras are never smooth sailing. Only by having conviction in the long term and adhering to value can one become the ultimate winner.