If You're Worried About a Market Crash, Here's the 1 Thing You Shouldn't Do, According to History.
2026-07-15 13:15
•Jennifer Saibil •The Motley Fool
•• •••• Axe Capital view
Why Selling in a Crash is Your Worst Mistake
History says riding out market drops pays off; selling during crashes locks in losses.
The impulse to sell when markets plunge is natural but costly. South African investors learned this the hard way during past rand crises and local equity sell-offs. Instead of running for the exits, it's wiser to build a defensive portfolio anchored by stable dividend payers like Naspers or AngloGold Ashanti, both resilient through cycles. Holding cash to buy when valuations become more attractive also makes sense, especially if the rand weakens against the dollar. Remember, the local market often rebounds before global indexes do because of resource and financial sector supports. The catch: this works well if your stomach can handle short-term dips and you avoid panic selling. If South Africa’s economy takes an unexpected hit or global trade tensions ramp up quickly, your strategy may falter. But historically, the better play is to stay put and add selectively. this is just my opinion and not financial advice
Hold core positions in defensive, dividend-heavy JSE stocks like AngloGold and Naspers. Keep some cash ready to buy on sharp rand-driven price dips; avoid selling during panic drops.
- Naspers
- AngloGold Ashanti
- USD/ZAR
- Sudden rand depreciation fueling inflation and investor flight
- Global trade shocks hitting resource and financial sectors hard
7/10
With the S&P 500 facing valuation concerns and macroeconomic headwinds, the article advises investors not to sell during a market crash. Historical data shows that staying invested and holding through downturns leads to significant long-term gains. The article recommends building a defensive portfolio with dividend and stable stocks, and keeping cash reserves to buy at lower prices.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Jennifer Saibil
Categories: Equities, Capital Returns
Tickers: PG, KO, COST, TJX
Sentiment: Positive - Mentioned as a defensive dividend stock that performs well during market downturns and provides passive income under all circumstances. Cited as a defensive dividend stock suitable for protecting portfolios during market crashes.
Keywords: market crash, S&P 500, CAPE ratio, defensive stocks, portfolio diversification, market recovery, investor psychology
Insights:
- PG: Positive: Mentioned as a defensive dividend stock that performs well during market downturns and provides passive income under all circumstances.
- KO: Positive: Cited as a defensive dividend stock suitable for protecting portfolios during market crashes.
- COST: Positive: Recommended as a defensive stock that performs well under market pressure and economic stress.