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What should I do when the stock market crashes?

Answer

In most cases, the best action is to do nothing – keep contributing on schedule and leave your long-term investments alone. Crashes feel urgent, but selling locks in losses and forces you to guess when to buy back, which almost no one does well. If anything, a crash is when your regular 401(k) and IRA contributions buy more shares at lower prices. First, confirm your emergency fund covers 3–6 months of expenses so you're never forced to sell investments to pay bills. Then check that your stock/bond mix still matches your time horizon; if it does, stay the course. Avoid checking your balance daily, which only amplifies anxiety. The investors who do worst aren't the ones who experience crashes – everyone does – they're the ones who sell during them. Build your emergency cushion with wealthserene.com/tools/emergency-fund so a downturn never forces your hand.

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Educational disclaimer: All content on WealthSerene.com is for educational purposes only and does not constitute investment advice. Projections and calculations are illustrative — actual results will vary based on market conditions, your specific situation, and many factors outside this tool’s scope. Always consult a qualified financial professional for advice specific to your situation. View full disclosures →