{
  "id": 4562675,
  "title": "If a Stock Market Crash Is on the Way, History Says This Is the Smartest Thing Investors Can Do",
  "url": "https://urgent.news/2026/08/29/if-a-stock-market-crash-is-on-the-way-history-says-this-is-the-4562675",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-29T16:57:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/stock-market-crash-way-history-165700081.html"
  },
  "original_language": "en",
  "account": "When the term \"stock market crash\" enters your mind, you might picture the black-and-white photos from 1929, where anxious crowds gathered outside the New York Stock Exchange, leading to the formation of bread lines. However, not all crashes are the same. Some are brief and cause minimal financial fallout, while others see the Federal Reserve step in to inject liquidity and help the economy recover. Despite the variety in crashes, history reveals the smartest thing investors can do: remain invested and continue buying high-quality, diversified stocks, especially index funds.\n\nDuring a market crash, fear may grip your nerves, causing you to want to flee. In this situation, the opposite approach is recommended: hold onto your investments and continue purchasing quality stocks, particularly index funds. Many claim to have the ability to consistently predict market exits and reentries, but this is rarely true. Those who attempt to time the market often end up losing over the long term, as they must be correct twice: when to exit and when to reenter, often under uncertain and emotional circumstances.\n\nWarren Buffett advises, \"Be fearful when others are greedy, and be greedy when others are fearful,\" highlighting the importance of understanding that timing the market is not a reliable strategy. Given that the U.S. stock market has experienced numerous crashes, both large and small, it's remarkable that it has managed to provide an average annual return of around 10% over the past century. This demonstrates that, even after severe market declines, such as the 57% drop in the S&P 500 during the 2008 crash, recoveries can lead to new record highs.\n\nWhen a crash occurs, there are several benefits to staying invested. Lower prices allow you to buy more shares of high-quality assets, potentially diversifying your portfolio or further balancing it. Compounding growth continues even during market downturns, enabling your gains to accumulate over time. Selling during a crash locks in temporary losses, whereas staying invested allows you to miss out on significant gains that often follow market declines. Historically, the greatest market gains typically follow a crash, and by remaining invested, you miss out on these opportunities.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Motley Fool",
        "title": "If a Stock Market Crash Is on the Way, History Says This Is the Smartest Thing Investors Can Do",
        "url": "https://urgent.news/2026/08/29/if-a-stock-market-crash-is-on-the-way-history-says-this-is-the",
        "published": "2026-08-29T16:37:00.000Z"
      },
      {
        "outlet": "Nasdaq Markets",
        "title": "If a Stock Market Crash Is on the Way, History Says This Is the Smartest Thing Investors Can Do",
        "url": "https://urgent.news/2026/08/29/if-a-stock-market-crash-is-on-the-way-history-says-this-is-the-4242296",
        "published": "2026-08-29T16:57:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}