I'm Not Worried About a Stock Market Crash, and It's Because I'm Making This 1 Investing Move
2026-10-26 08:45
•Adria Cimino •The Motley Fool
•••••• •••• Axe Cap view
Why a Stock Market Crash Doesn’t Shake Me
Holding quality stocks long-term remains the best defense against market panics.
Despite warnings around high valuations, especially seen through metrics like the Shiller CAPE ratio, I’m not losing sleep over a potential crash. The S&P 500 doubling in three years feels frothy, no doubt, but history shows enduring quality companies usually bounce back. In South Africa, that means looking beyond the noise and focusing on steady performers like Naspers and MTN, which have strong cash flows and global reach. If the rand weakens against the dollar, it can pressure imported goods but benefit exporters, potentially bolstering mining stocks like AngloGold Ashanti. I’m wary of trying to time markets; instead, buying the dips in proven stocks is a wiser move. But if inflation spikes much higher or global economic troubles deepen unexpectedly, this outlook could falter. this is just our opinion and not financial advice
Buy and hold shares in resilient JSE companies like Naspers and MTN while keeping an eye on exporters like AngloGold Ashanti to hedge against rand weakness. Avoid trying to time the market; instead, use dips as buying opportunities.
- Naspers
- MTN
- AngloGold Ashanti
- USD/ZAR
- Persistent inflation forcing central banks to hike rates aggressively
- A sudden deepening of global recession concerns reducing demand for emerging markets exports
7/10
Despite concerns about elevated valuations and potential market corrections, the author argues investors shouldn't worry about crashes if they hold quality stocks long-term. The S&P 500 has gained 100% over three years, but the Shiller CAPE ratio suggests stocks are expensive. The author recommends holding quality companies and buying dips rather than timing the market, citing historical data showing recovery after downturns.
Our take is based on reporting first published by The Motley Fool.