Market Crash Simulator
See how continued investing during market downturns affects your wealth
Starting Value
$500,000
Maximum Drawdown
33.4%
Final (Keep Investing)
$637,404
Final (Stop Investing)
$466,885
The Power of Staying Invested
By continuing to invest during the crash, you end up with $170,519 MORE than if you stopped. That's 36.5% more wealth!
By submitting your email, you agree to our Privacy Policy, including that we store your email and results and may share them with advertising partners.
Understanding the Concept
Market crashes are inevitable, but continuing to invest during downturns can dramatically improve long-term returns through dollar-cost averaging.
Tips to Optimize
- Don't panic sell - markets always recover
- Continue regular contributions to buy at lower prices
- Keep 3-6 months emergency fund for peace of mind
Frequently Asked Questions
Should I keep investing during a market crash?
History shows that continuing to invest during crashes (dollar-cost averaging) leads to better long-term returns. You're buying shares at lower prices, which compounds over time.
How long do market crashes typically last?
Average bear markets last 9-14 months. The 2008 crash took about 6 years to fully recover, while COVID-19's crash recovered in just 6 months. Time in the market beats timing the market.
What's a typical market crash severity?
A correction is 10-20%, a bear market is 20%+. Major crashes: 2008 was ~50%, COVID-19 was ~34%, dot-com was ~49%. Average bear market decline is about 33%.
How should I prepare for a market crash?
Keep 3-6 months emergency fund, maintain your regular investment schedule, avoid panic selling, consider rebalancing to buy undervalued assets, and ensure your allocation matches your risk tolerance.
Is it better to have cash during a crash?
Having some cash allows you to buy more during dips, but sitting entirely in cash means missing growth. A balanced approach: stay invested but keep an emergency fund and some dry powder for opportunities.