UK Edition

Saturday, 26 September 2026

Time Trade

Markets, trading & finance — British perspective

Trading

Here's What 60 Years of History Tells Us About Stock Market Crashes

· Nasdaq Market Structure

Key Points

  • CNN's Fear & Greed Index shows investors are currently fearful.

  • Nine stock market crashes have occurred since the start of 1966.

  • However, the S&P 500 has bounced back from every market crash.

  • 10 stocks we like better than S&P 500 Index ›

According to CNN's Fear & Greed Index, which measures what emotions are driving the market, fear is taking over. At the time of writing, the index is at 35 (out of 100, which is extreme greed). With investor sentiment dipping, the idea of a correction or crash naturally becomes more of a topic of discussion.

We can't predict how the market will perform in the near term, but even if (or when, rather) a crash does happen, 60 years of stock market history should provide a silver lining.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

A history of stock market crashes

A stock market crash happens when a major index falls by at least 20% from a recent peak. In the past 60 years, there have been nine official market crashes, based on the S&P 500 (SNPINDEX: ^GSPC):

Obviously, it's never ideal when your portfolio is in the red. However, the silver lining is that the market has bounced back from every crash it has ever experienced. Using the S&P 500's 7,706.03 closing level on Sept. 23, here's how much it has grown from each of the above market crashes:

Don't focus on trying to predict a crash

It's always better to be overprepared than underprepared, but you don't want to find yourself trying to predict when a market crash will happen. This could make you hesitant to invest, and you might miss out on potential gains if the market continues to climb.

Nobody can predict how the market will move in the near term. The best thing you can do is stay consistent and trust that the market will bounce back, even if it crashes. If you still have some time before retirement, one of the worst things you can do is panic sell because you could be doing so at a loss, triggering more taxes, or ending your chances to benefit when the market eventually bounces back.

Past performance doesn't guarantee future performance, but the S&P 500's long-term resilience is one of the surest bets in the stock market.

Should you buy stock in S&P 500 Index right now?

Before you buy stock in S&P 500 Index, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*

Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

*Stock Advisor returns as of September 26, 2026.

Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.