On May 18, 1980, Mount St. Helens Erupted.

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A quiet morning in southwestern Washington was forever changed by the explosive eruption of Mount St. Helens—the deadliest and most costly volcanic event in U.S. history. After more than a century of dormancy, the mountain stirred to life that spring: earthquakes rumbled, steam vents billowed, and a visible bulge grew on the north face, warning of pressure mounting below. Despite these clear signals, many underestimated the risks—some out of skepticism, others through familiarity with the mountain’s silence. At 8:32 a.m., a magnitude 5.1 earthquake rattled beneath Mount St. Helens, triggering the largest landslide ever recorded and unleashing a cataclysmic lateral blast. A massive swath of forest was flattened in seconds; the summit dropped by over 1,300 feet; and volcanic ash soared skyward, blanketing cities hundreds of miles away. Fifty-seven people lost their lives, including locals and scientists who, despite mounting evidence, stayed too close. In the aftermath, rivers choked with debris, landscapes were transformed, and the region became a remarkable laboratory for scientists and ecologists studying renewal and resilience. For all its devastation, Mount St. Helens offers a powerful story: risk is ever-present, but how we perceive and adapt to it can shape outcomes far beyond what we expect.Here are Four Lessons for the Modern Investor from the eruption of Mt. St. Helens. 🌋 Risk Homeostasis—How Perceived Risk Shapes BehaviorLeading up to the eruption, the visible signs of danger—steam, earthquakes, and a swelling mountain—didn’t have the same effect on everyone. Some people, accustomed to the mountain’s serenity, normalized the risk and discounted the threat. Others saw the warning signs and made conscious decisions to evacuate and take safety precautions. This is risk homeostasis in action: As described in the book History Lessons for the Modern Investor, humans self-regulate the risk they’re willing to tolerate, adapting their behavior as their perception of risk shifts. In markets, when volatility subsides or threats appear distant, investors naturally take on more risk, stretching for yield or neglecting hedges. But as perceived danger rises, they often scramble to reduce exposure, sometimes too late. The lesson? Cultivating a steady awareness of underlying risk, not just the risk you feel in the moment, can help you make level-headed, forward-thinking decisions rather than reactive moves when danger finally erupts.🌋 Have an Emergency Plan After the eruption, those who had prepared and acted quickly, keeping supplies at hand and routes in mind, fared far better than those who stalled or assumed the worst could never happen. The same principle applies to investors: having an emergency plan matters. This often means maintaining adequate liquidity and a clear cash reserve. When markets shake or personal emergencies arise, liquid assets buy you time and options, allowing you to avoid selling core investments at inopportune moments, or to take advantage of opportunities that others cannot. In behavioral finance, the simple act of preparation reduces panic, much as those who knew evacuation protocols responded more calmly under stress. Build your financial “emergency plan” before you need it.🌋 Adapt to Change and Seek RenewalFrom the lifeless blast zone sprang new growth—plants breaking through ash, wildlife returning in surprising abundance. Investors, too, must be ready to pivot in response to upheaval. Market corrections or economic disruptions aren’t just setbacks; they’re opportunities to reassess strategy, reallocate toward areas primed for growth, and let go of past approaches that no longer serve. Renewal requires courage to change direction and the discipline to look for value where others see only ruin.🌋 Learning in Crisis Leads to Long-Term StrengthMount St. Helens revolutionized the science of volcanology, leading to sophisticated early warning systems and better disaster preparedness. In investing, every bout of volatility or personal misstep is a chance to deepen risk awareness and refine your process. Those who reflect on what happened—and why—emerge better prepared for the next cycle, transforming hard-won lessons into a more robust strategy for the future.A Final ThoughtThe eruption of Mount St. Helens stands as both a cautionary tale and an inspiration. Risk is never absent—it just shifts, and our perception of it often lags reality. By understanding risk homeostasis, maintaining an emergency plan, remaining adaptable, and learning from adversity, investors can turn even the most seismic disruptions into catalysts for renewal and growth.

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🎯Patrick Huey is a small business owner and the author of three books on history and finance as well as the highly-rated recently-released fictional work Hell: A Novel. As owner of Victory Independent Planning, LLC, Patrick works with families and non-profit organizations. He is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Advisor in Philanthropy® and an Accredited Tax Preparer. He earned a Bachelor’s degree in History from the University of Pittsburgh, and a Master of Business Administration from Arizona State University. Patrick previously served as a Naval Flight Officer from 1996-2005, earning the Strike Fighter Air Medal during combat operations and two Navy Achievement Medals. 👉🏻 Reach him at 877-234-8957 or schedule a time to talk using this link:

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