Decision Library
Should I Sell During a Market Crash?
Every major crash feels different in the moment, but the pattern of what selling and re-entering later actually costs is remarkably consistent across 2008, 2020, and 2022.
Run the Numbers
Calculate Your Own Scenario
Cash/FD is assumed to earn 6% p.a. while parked.
Held through the crash
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Sold in panic, re-entered later
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Scenarios
How This Usually Plays Out
- You held through the crash and did nothing — historically the simplest strategy has usually outperformed trying to time the bottom.
- You sold near the bottom and waited for "certainty" before re-entering — certainty usually arrives well after the market has already recovered most of its losses.
Risks & Exceptions
When the Normal Advice Doesn't Apply
- Past crashes recovered — that's not a guarantee every future one will, or on the same timeline. This is a historical pattern, not a prediction.
Decision Framework
How to Actually Decide
- Before selling, run your numbers through the calculator above using a comparable past crash.
- Separate "the market is falling" from "I specifically need this money soon" — only the second is a real reason to sell.
- If you must reduce risk, do it as a planned allocation change, not a reaction to a headline.
This page is for educational purposes only and does not constitute financial advice. Figures are illustrative and vary based on your individual circumstances, lender policies, and market conditions. Always consult a certified financial advisor before making major financial decisions.