Should I sell when the market crashes, or hold?
Every major market crash has been followed by full recovery and new highs. Selling during downturns crystallises losses and often causes investors to miss the rebound. Staying invested through volatility has historically delivered far better long-term outcomes — provided your time horizon is long enough.
Every major crash has been followed by full recovery
From the 2008–09 Global Financial Crisis (–52%) to the 2020 COVID crash (–34%) and the 2022 correction, markets have always recovered and gone on to new highs. Investors who sold at the bottom and waited typically re-entered at much higher prices — or never did.
Why selling during a crash almost always makes it worse
Timing the market requires two correct decisions: when to sell and when to buy back in. The best days in the market often cluster right after the worst ones. Crystallised losses are permanent; temporary drawdowns are not.
When selling is the right decision
Only sell if you need the money within the next 2–3 years. Short-term money should never have been in equities in the first place.
Key takeaway: The investors who suffer the worst long-term outcomes are usually those who sell during crashes and miss the subsequent recovery.
Arken scores your portfolio's risk and concentration and gives you a contextual AI advisor to talk through the hold-or-sell decision, grounded in what you actually own rather than emotion.
