If a Stock Market Crash Is Coming, History Says This Is the Smartest Move Investors Can Make
2026-09-03 08:05
•Adria Cimino •The Motley Fool
•••••••• •• Axe Cap view
Staying Invested: The Smart Move When Fears Loom
History shows selling before crashes often means missing the best rebounds, especially in tech-driven rallies.
The S&P 500’s recent surge, fueled by AI excitement, mirrors what we saw in previous tech booms. Yet inflation worries and looming Fed hikes cast a shadow. Investors new to markets might panic and sell, but history tells us that pulling out ahead of a crash usually means locking in losses and missing the bounce back. In South Africa, the rand (USD/ZAR) tends to react to global shifts, so a stronger dollar can pressure local stocks, especially earnings-heavy firms like Naspers and Prosus linked to global tech. Still, these counters also benefit from long-term growth trends in digital services. If inflation eases or Fed pauses hikes, global markets and USD/ZAR could stabilize, lifting local shares. But if inflation surprises on the upside, expect further volatility and rand weakness—making defensive moves more attractive. this is just our opinion and not financial advice
Stay invested in growth-oriented shares like Naspers and Prosus, but trim exposure if the rand weakens sharply above 19.5 USD/ZAR, signaling stress. Maintain a lookout for safer financials like Standard Bank that offer sturdy dividends amid volatility.
- Naspers
- Prosus
- USD/ZAR
- Standard Bank
- Inflation remaining stubborn, forcing aggressive Fed hikes
- Rand weakening significantly due to global dollar strength
6/10
Despite strong S&P 500 performance and robust corporate earnings driven by AI enthusiasm, economic concerns about inflation and potential Fed rate hikes could pressure markets. The article advises investors to continue investing through all market cycles rather than selling during downturns, citing historical evidence that staying invested has consistently yielded long-term gains even when buying before major crashes.
Our take is based on reporting first published by The Motley Fool.