If a Downturn Is Coming, 50 Years of Market History Says This Is the Single Best Response

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Why Sitting Tight Beats Trying to Time a Downturn

A look at why history and Buffett agree that doing nothing in a market crash often wins.

South African investors fret whenever the rand spikes or global headlines signal recession fears. The takeaway from 50 years of the US market, championed by Buffett's steady hand at Berkshire Hathaway (BRK.A, BRK.B), is surprisingly simple: don’t panic. The data shows selling during downturns locks in losses, while staying invested — or even buying through regular contributions to low-cost trackers like an S&P 500 ETF (think VOO or SPY) — smooths out the ride and boosts returns over time. For local investors, that translates into resisting the urge to dump positions in Prosus or Naspers when USD/ZAR rattles higher. Yes, the rand's volatility stings, and yes, local economic risks exist, but market timing remains a fool's errand. The risk? A sudden, prolonged economic shock could drip-feed pain longer than the patience of many. Still, history and Buffett’s approach argue that temperament beats timing every time. this is just our opinion and not financial advice