{"id":12996,"date":"2025-07-04T13:40:58","date_gmt":"2025-07-04T11:40:58","guid":{"rendered":"https:\/\/schweizerfinanzblog.ch\/stock-market-crash-guide-how-to-master-market-crises-with-confidence-and-profit-in-the-long-term\/"},"modified":"2025-07-08T09:32:09","modified_gmt":"2025-07-08T07:32:09","slug":"stock-market-crash-guide-how-to-master-market-crises-with-confidence-and-profit-in-the-long-term","status":"publish","type":"post","link":"https:\/\/schweizerfinanzblog.ch\/en\/stock-market-crash-guide-how-to-master-market-crises-with-confidence-and-profit-in-the-long-term\/","title":{"rendered":"Stock market crash guide: How to master market crises with confidence and profit in the long term"},"content":{"rendered":"\n<p><strong>Sharp price falls often trigger precisely what is particularly dangerous on the stock market: emotional trading. Fear, uncertainty and the urge to take action are natural reactions &#8211; but rarely lead to smart investment decisions. <\/strong><\/p>\n\n<p><strong>In this article, we show you how we proceeded in the last correction phase, what considerations guided us &#8211; and in which two situations a sale may still be necessary.<\/strong><\/p>\n\n<p><strong>We also take a look back: what patterns have emerged in previous stock market crashes &#8211; and how you can use this knowledge for future investment decisions.<\/strong><\/p>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/post-info-component\/post-info-component.css\">\n<div class=\"post-info-component\">\n\t\t<div class=\"von-and-comments\">\n\t\t\t\t\t<a target=\"_blank\" href=\"https:\/\/schweizerfinanzblog.ch\/ueber-uns\/\">Stefan &#038; Toni<\/a>\n\t\t\t\t <span>| <a href=\"#comments\">3 Comments<\/a><\/span> \t\t\n\t<\/div>\n\t<div class=\"post-dates\">\n\t\tpublished on 4.7.2025\t<\/div>\n<\/div>\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/kurz-bundig-component\/kurz-bundig-component.css?v=2\">\n\n<div  id=\"aIBAJTM\" class=\"kurz-bunding mb-3\" style='background-color:#f9f9fa'>\n\t<div class=\"d-flex kurz-bunding-title\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"kurz-bunding-icon\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2023\/01\/lifghtbulb2.png\">\n\t\t<\/div>\n\t\t<p class=''>\n\t\t\tShort &amp; sweet\t\t<\/p>\n\t<\/div>\n\n\t<div class=\"kurz-bunding-content\">\n\t\t<ul>\n<li><strong>Stock market crashes are part of the cycle<\/strong>. Market fluctuations are part of the cycle &#8211; they often only last a short while and offer long-term opportunities for patient investors. <\/li>\n<li><strong>Avoid emotional behavior.<\/strong>  Panic selling and quick decisions rarely lead to positive results. Have a clear plan and stay calm. <\/li>\n<li><strong>Check target allocation.<\/strong>  Use declines to bring your portfolio back into balance &#8211; whether through acquisitions or adjustments.<\/li>\n<li><strong>Sell only if necessary.<\/strong>  A sale should not be made out of fear or short-term considerations, but should be carefully considered in line with your risk profile.<\/li>\n<li><strong>Use crises as an opportunity.<\/strong>  Those who are prepared and have a long-term perspective can profit from market crises as soon as the markets recover.<\/li>\n<\/ul>\n\t<\/div>\n\t\t\t\n\t<\/div>\n\n<style>\n\t#aIBAJTM .kurz-bunding-content li::marker{\n\t\tcolor: #37c392;\n\t}\n\t#aIBAJTM .kurz-bunding-call-to-action a{\n\t\tbackground-color: #1bab78;\n\t\tcolor: #FFFFFF;\n\t}\n\n<\/style>\n<div id=\"toc_container\" class=\"no_bullets\"><p class=\"toc_title\">Contents<\/p><ul class=\"toc_list\"><li><a href=\"#Markets_in_upheaval_8211_between_correction_and_turning_point\">Markets in upheaval &#8211; between correction and turning point<\/a><\/li><li><a href=\"#Psychology_in_crash_times_8211_why_our_gut_feeling_is_rarely_a_good_guide\">Psychology in crash times &#8211; why our gut feeling is rarely a good guide<\/a><\/li><li><a href=\"#Sudden_stock_market_crash_you_now_have_these_three_options\">Sudden stock market crash: you now have these three options<\/a><ul><li><a href=\"#Option_1_in_the_event_of_a_stock_market_crash_sell\">Option 1 in the event of a stock market crash: sell<\/a><ul><li><a href=\"#Reason_1_Personal-practical_reasons\">Reason #1: Personal-practical reasons<\/a><\/li><li><a href=\"#Reason_2_Fundamental_system_doubts\">Reason #2: Fundamental system doubts<\/a><\/li><li><a href=\"#Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><li><a href=\"#Option_2_in_the_event_of_a_stock_market_crash_sit_it_out\">Option 2 in the event of a stock market crash: sit it out<\/a><\/li><li><a href=\"#Option_3_in_the_event_of_a_stock_market_crash_buy_in\">Option 3 in the event of a stock market crash: buy in<\/a><\/li><\/ul><\/li><li><a href=\"#How_we_acted_8211_two_paths_one_goal\">How we acted &#8211; two paths, one goal<\/a><ul><li><a href=\"#Stefan_remains_calm_8211_and_continues_to_invest_consistently\">Stefan remains calm &#8211; and continues to invest consistently<\/a><\/li><li><a href=\"#Toni_chooses_a_more_offensive_approach_8211_with_system_courage_and_leverage\">Toni chooses a more offensive approach &#8211; with system, courage and leverage<\/a><\/li><li><a href=\"#Two_paths_one_attitude\">Two paths, one attitude<\/a><\/li><\/ul><\/li><li><a href=\"#A_look_back_what_history_teaches_us\">A look back: what history teaches us<\/a><\/li><li><a href=\"#Five_severe_stock_market_crashes\">Five severe stock market crashes<\/a><ul><li><a href=\"#2020_Corona_pandemic\">2020: Corona pandemic<\/a><\/li><li><a href=\"#2008_Global_financial_crisis\">2008: Global financial crisis<\/a><\/li><li><a href=\"#2000_Bursting_of_the_Internet_bubble\">2000: Bursting of the Internet bubble<\/a><\/li><li><a href=\"#1987_Black_Monday\">1987: Black Monday<\/a><\/li><li><a href=\"#1929_The_beginning_of_the_Great_Depression\">  1929: The beginning of the Great Depression<\/a><\/li><\/ul><\/li><li><a href=\"#Your_long-term_success_starts_now\">Your long-term success starts now<\/a><\/li><li><a href=\"#This_might_also_interest_you\">This might also interest you<\/a><\/li><li><a href=\"#Disclaimer\">Disclaimer<\/a><\/li><\/ul><\/div>\n<h2 class=\"wp-block-heading\"><span id=\"Markets_in_upheaval_8211_between_correction_and_turning_point\">Markets in upheaval &#8211; between correction and turning point<\/span><\/h2>\n\n<p>The financial markets are likely to remain <strong>volatile<\/strong> for some time to come. Donald Trump&#8217;s return to the White House, geopolitical tensions and economic policy uncertainties in the US and China are noticeably increasing the nervousness of many investors. The markets are reacting to this with sharp swings &#8211; sometimes downwards, sometimes with short-lived recoveries.  <\/p>\n\n<p>In such phases, many people ask themselves the question: <strong>Is this still part of normal stock market activity &#8211; or are we experiencing a real turning point?<\/strong><\/p>\n\n<p>We are also feeling how political uncertainty triggers the need for control &#8211; and thus the temptation to become active in the portfolio. But right now it is becoming clear how important it is <strong>not<\/strong> to make financial decisions <strong>based on gut instinct<\/strong>. Not every downturn calls for a reaction &#8211; but some upheavals can make a <strong>strategic rethink<\/strong> necessary.  <\/p>\n\n<p>We will discuss the various trading options in the event of a stock market crash later on. However, one thing is crystal clear in advance: anyone who sells hastily during a crisis, parks the proceeds on the sidelines and only re-enters when the stock market has recovered risks <strong>significant losses in their portfolio<\/strong>. The following chart shows the impact this can have.  <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1630\" height=\"1038\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Minderrendite-durch-vorzeitigen-Verkauf.png\" alt=\"Stock market crash\" class=\"wp-image-12956\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Minderrendite-durch-vorzeitigen-Verkauf.png 1630w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Minderrendite-durch-vorzeitigen-Verkauf-768x489.png 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Minderrendite-durch-vorzeitigen-Verkauf-1536x978.png 1536w\" sizes=\"(max-width: 1630px) 100vw, 1630px\" \/><figcaption class=\"wp-element-caption\">Example: Panic selling of a 60\/40 portfolio (equities\/bonds) at the low point of the coronavirus crash &#8211; with reinvestment after the recovery. Anyone who sells in March 2020 during the coronavirus crash and parks the proceeds on the sidelines will miss out on the rapid market recovery. The consequence in this specific case: instead of a +21 % gain, the result is significantly weaker. Although the portfolio can recover later, the missed gains remain a disadvantage in the long term compared to a strategy of sitting out. (Source: Vanguard Research)    <\/figcaption><\/figure>\n\n<h2 class=\"wp-block-heading\"><span id=\"Psychology_in_crash_times_8211_why_our_gut_feeling_is_rarely_a_good_guide\">Psychology in crash times &#8211; why our gut feeling is rarely a good guide<\/span><\/h2>\n\n<p>When the stock markets fall, the pulse rises. The feeling of having to do something now is deeply rooted in us &#8211; in evolutionary terms, reacting quickly was often essential for survival. But it is precisely this reflex that is problematic on the stock market: those who allow themselves to be driven by fear or short-term headlines rarely make good decisions.  <\/p>\n\n<p>Typical emotional reactions in such phases are<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Fear of loss:<\/strong> We psychologically weigh losses more heavily than gains. The thought that things could go even further down tempts us to get out at the worst possible time. <\/li>\n\n\n\n<li><strong>Herd behavior:<\/strong> If &#8220;everyone&#8221; is selling, it seems right to do so &#8211; even if your own situation is stable.<\/li>\n\n\n\n<li><strong>Illusion of control:<\/strong> We want to reduce uncertainty by actively intervening, although doing nothing would often be wiser.<\/li>\n<\/ul>\n\n<p>These psychological traps are not a weakness &#8211; they affect us all, even experienced investment professionals. That is why it is so important to be aware of them and to have clear principles for dealing with market fluctuations. This has also been our guiding principle in the current phase: first observe, then think &#8211; and only then, if at all necessary, act.  <\/p>\n\n<p>A cool head almost always pays off on the stock market &#8211; emotional trading, on the other hand, is unfortunately very rare.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Sudden_stock_market_crash_you_now_have_these_three_options\">Sudden stock market crash: you now have these three options<\/span><\/h2>\n\n<h3 class=\"wp-block-heading\"><span id=\"Option_1_in_the_event_of_a_stock_market_crash_sell\">Option 1 in the event of a stock market crash: sell<\/span><\/h3>\n\n<p>The exit step, which is usually taken out of fear &#8211; but can be justified in certain cases. Basically, we see <strong>two legitimate reasons for selling<\/strong>: <\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"Reason_1_Personal-practical_reasons\">Reason #1: Personal-practical reasons<\/span><\/h4>\n\n<p>Anyone who is dependent on capital in the short term or realizes that their own risk profile no longer matches their life situation can consider a (partial) sale. However, there is often a strategic oversight in such cases: anyone investing in shares should have a sufficiently long investment horizon &#8211; ideally ten years or more. This is because past experience shows that share prices always recover over longer periods of time. Anyone who has to sell in the middle of a correction because the money will soon be needed has not properly aligned their portfolio with their needs.   <\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"Reason_2_Fundamental_system_doubts\">Reason #2: Fundamental system doubts<\/span><\/h4>\n\n<p>Another reason for selling is a deep mistrust of the capital markets themselves. Anyone who is convinced that capitalism will fail in the long term or that free markets are structurally on the brink of collapse must fundamentally question their investment strategy. In this case, the problem is not a fall in prices, but confidence in the entire system.  <\/p>\n\n<h4 class=\"wp-block-heading\"><span id=\"Conclusion\">Conclusion<\/span><\/h4>\n\n<p>Whatever the reason, a decision to sell should never be based on a gut feeling, but on a sound assessment &#8211; sober, strategic and professional.<\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"Option_2_in_the_event_of_a_stock_market_crash_sit_it_out\">Option 2 in the event of a stock market crash: sit it out<\/span><\/h3>\n\n<p>Probably the most common &#8211; and often the most sensible &#8211; strategy is to do nothing. If you have a broadly diversified portfolio that matches your own risk capacity and risk appetite, you can usually withstand temporary downturns well. Historically, markets have often recovered more quickly after crises than many would have expected. Patience therefore pays off in most cases &#8211; provided you have the nerve.   <\/p>\n\n<p>Doing nothing also means not interrupting the current savings plan, but simply letting it continue and enjoying the favorable prices.<\/p>\n\n<p>If you allow your savings plan to continue unperturbed in times of crisis or even increase your investments as in option 3 below, you will benefit from the <a href=\"https:\/\/de.wikipedia.org\/wiki\/Durchschnittskosteneffekt\" target=\"_blank\" rel=\"noreferrer noopener\">cost-average effect<\/a>. This means that you get more units for the same amount thanks to the lower stock market prices. <\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"Option_3_in_the_event_of_a_stock_market_crash_buy_in\">Option 3 in the event of a stock market crash: buy in<\/span><\/h3>\n\n<p>The two quotes often attributed to the banker Nathan Rothschild &#8211; <em>&#8220;Buy when the guns are thundering&#8221; <\/em>and <em>&#8220;Buy when there&#8217;s blood in the streets &#8211; even if it&#8217;s your own.&#8221;<\/em> &#8211; get to the heart of the idea of <strong>anti-cyclical investing<\/strong>. They are emblematic of the strategy of buying boldly, especially in times of great uncertainty. <\/p>\n\n<p>Buying during a market correction can actually be one of the best ways to profit from declines &#8211; provided you follow a <strong>rules-based strategy<\/strong>.<\/p>\n\n<p>Let&#8217;s assume you have a portfolio with a target allocation of 80% equities and 20% liquidity. Your total assets amount to <strong>CHF 200,000<\/strong>, so: <\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Equities:<\/strong> CHF 160,000 (80% of the portfolio)<\/li>\n\n\n\n<li><strong>Liquidity:<\/strong> CHF 40,000 (20% of the portfolio)<\/li>\n<\/ul>\n\n<p>Now the stock market corrects by 20%, which affects your portfolio. Your assets now only amount to <strong>CHF 168,000<\/strong> and the allocation has changed: <\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Equities:<\/strong> CHF 128,000 (decreases to 76% of the portfolio)<\/li>\n\n\n\n<li><strong>Liquidity:<\/strong> CHF 40,000 (increases to 24% of the portfolio)<\/li>\n<\/ul>\n\n<p>To restore your original <strong>target allocation of 80% equities and 20% liquidity<\/strong>, you need to <strong>increase<\/strong> your <strong>equity allocation<\/strong> so that your equity position returns to 80% of the new total assets of CHF 168,000:<\/p>\n\n<ul class=\"wp-block-list\">\n<li><strong>Shares:<\/strong> CHF 134,400 (80% target allocation restored)<\/li>\n\n\n\n<li><strong>Liquidity:<\/strong> CHF 33,600 (20% target allocation restored)<\/li>\n<\/ul>\n\n<p>This means you invest an additional <strong>CHF 6,400<\/strong> from your savings pot in equities (ETFs) to rebalance your portfolio.<\/p>\n\n<p>This rule-based approach helps you not to trade out of fear or euphoria in a market downturn, but to maintain your original strategy. If you continuously follow this approach, you can benefit from lower prices while staying focused on your long-term goals. <\/p>\n\n<p>Please note that you should <strong>always leave<\/strong> your <strong>liquidity reserve untouched<\/strong> when buying shares or rebalancing in this way. As a rule of thumb, you should keep at least three months&#8217; expenses as a cash buffer for short-term bottlenecks or unexpected expenses. This will keep you financially flexible at all times.  <\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"How_we_acted_8211_two_paths_one_goal\">How we acted &#8211; two paths, one goal<\/span><\/h2>\n\n<p>After giving you an overview of the three options for responding to a market correction &#8211; sell, sit out or buy &#8211; we would like to show you how we took concrete action during the last price drop caused by <strong>Trump&#8217;s tariff hammer<\/strong> Because theory is one thing. It becomes crucial when it becomes real. <\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"Stefan_remains_calm_8211_and_continues_to_invest_consistently\">Stefan remains calm &#8211; and continues to invest consistently<\/span><\/h3>\n\n<p>Stefan was not deterred and stuck to his long-term plan: in December 2024 &#8211; shortly before the escalation of the tariff dispute &#8211; he launched a new savings plan via VIAC Invest in a global equity portfolio to supplement his ETF portfolio. His goal: to combine steady wealth accumulation with ongoing rebalancing &#8211; automatically, in a disciplined manner and without hectic interventions. <\/p>\n\n<p>After all, if the originally targeted asset allocation deviates from the actual portfolio over time due to market movements, manual reallocations are not necessarily required. With the savings plan \u00e0 la VIAC Invest, findependent or other low-cost robo-advisors, you can not only build up your assets conveniently by means of a standing order, but also restore the balance in the portfolio step by step &#8211; simply at the touch of a button. <\/p>\n\n<p>To illustrate: the US equity component was slightly above the target value, which is why he underweighted it in the new savings plan.<\/p>\n\n<p>This approach has clear advantages: When prices fall, Stefan gets more shares for the same amount thanks to the cost-average effect already explained. At the same time, the &#8220;standing order&#8221; method minimizes the risk of investing large sums at an unfavourable time &#8211; and provides emotional stability when the markets get stormy. <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1530\" height=\"733\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/VIAC_Performance-1530-x-733-px.png\" alt=\"VIAC savings plan\" class=\"wp-image-12961\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/VIAC_Performance-1530-x-733-px.png 1530w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/VIAC_Performance-1530-x-733-px-768x368.png 768w\" sizes=\"(max-width: 1530px) 100vw, 1530px\" \/><figcaption class=\"wp-element-caption\">Despite the slump in share prices following Trump&#8217;s surprise &#8220;Liberation Day&#8221; on April 2, 2025, Stefan remained true to his automatic, global savings plan from VIAC Invest (left chart, step-like progression in black). While the markets slumped in the meantime (right chart, orange line), he made undeterred use of the favorable share prices &#8211; and was back in the black by the beginning of May.   <\/figcaption><\/figure>\n\n<h3 class=\"wp-block-heading\"><span id=\"Toni_chooses_a_more_offensive_approach_8211_with_system_courage_and_leverage\">Toni chooses a more offensive approach &#8211; with system, courage and leverage<\/span><\/h3>\n\n<p>Toni also relies on a clear plan &#8211; but takes a more offensive approach. He also remains fully invested throughout and does not hold back cash for &#8220;better&#8221; prices. Instead, he makes targeted use of <strong>Lombard loans<\/strong> during pronounced setbacks of 20%, 30% and 40% to strengthen his existing portfolio with additional capital.  <\/p>\n\n<p>His approach follows fixed rules: Moderate leverage staggered according to the strength of the correction (loan-to-value from 20% to max. 40%), no unnecessary risk and no &#8220;gut instinct&#8221; bets.<\/p>\n\n<p>Thanks to the generally low level of interest rates and the <a href=\"https:\/\/www.interactivebrokers.co.uk\/mkt\/?src=schweiz13&amp;url=%2Fde%2Findex.php%3Ff%3D46996%0A\" target=\"_blank\" rel=\"noreferrer noopener\">attractive conditions offered by Interactive Brokers<\/a> &#8211; Toni paid just 1% interest on his last securities loan in April 2025 &#8211; the strategy remains viable, particularly in periods of low interest rates.<\/p>\n\n<p>For broadly diversified ETF portfolios such as the MSCI World, the required maintenance margin is typically around 15% of the total portfolio value &#8211; i.e. measured by the market value of all positions, without deducting the borrowed capital used.<\/p>\n\n<p>Toni&#8217;s strategy is designed in such a way that even major setbacks &#8211; such as the approximately 55% slump during the financial crisis &#8211; would not have triggered a margin call. Although borrowed capital is used, which fundamentally increases the risk, the loan-to-value limits are deliberately conservative. As a result, Toni can remain calm even in the event of strong price fluctuations and retains control over his positions.  <\/p>\n\n<p>In recent years, Toni has successfully applied this strategy during three significant setbacks: the &#8220;Trump tariff hammer&#8221; in 2025, the stock market decline in 2022 and the coronavirus crash in 2020. As soon as share prices return to their previous highs, Toni sells the purchased shares and uses the proceeds to repay the Lombard loan. <\/p>\n\n<p>The advantage of his leverage strategy: immediate effect and maximum capital efficiency. The downside: higher volatility &#8211; in both directions. <\/p>\n\n<p>You can find out more about leverage with securities loans and the associated risks in our <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/lombard-loan-when-buying-etfs-a-booster-for-your-return-on-equity-or-playing-with-fire\/\" target=\"_blank\" rel=\"noopener\">article &#8220;Lombard loans when buying ETFs&#8221;.<\/a><\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1986\" height=\"734\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Chart_Trump-Crash-1.png\" alt=\"Toni Crash\" class=\"wp-image-12967\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Chart_Trump-Crash-1.png 1986w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Chart_Trump-Crash-1-768x284.png 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Chart_Trump-Crash-1-1536x568.png 1536w\" sizes=\"(max-width: 1986px) 100vw, 1986px\" \/><figcaption class=\"wp-element-caption\">A rule-based strategy and a bit of luck: Toni&#8217;s last ETF tranche &#8211; leveraged with a Lombard loan &#8211; was made precisely at the price low during the tariff debate triggered by Trump.  <\/figcaption><\/figure>\n\n<h3 class=\"wp-block-heading\"><span id=\"Two_paths_one_attitude\">Two paths, one attitude<\/span><\/h3>\n\n<p>Apart from a <strong>liquidity reserve for unexpected expenses<\/strong>, neither Stefan nor Toni hold back liquidity to &#8220;wait&#8221; for better market moments &#8211; because we don&#8217;t believe in market timing, but in <strong>time in the market<\/strong>. The key is not to hit the perfect moment, but to stick with it &#8211; with discipline, a system and a clear plan. <\/p>\n\n<p>As different as our approaches are, the underlying principle is the same: to remain invested for the long term, to act rationally and to use market weakness as an opportunity.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"A_look_back_what_history_teaches_us\">A look back: what history teaches us<\/span><\/h2>\n\n<p>In <strong>stock market crashes <\/strong>(rapid correction) or <strong>bear markets <\/strong>(slower correction), share prices fall by <strong>20% or more<\/strong> from recent highs due to widespread pessimism and negative investor sentiment until a new temporary low is reached. Price falls of between <strong>10% and 20%<\/strong> are referred to as a <strong>stock market correction<\/strong>.   <\/p>\n\n<p>Stock market crashes always feel scary at the time they happen &#8211; but they are nothing new. If you take a step back, you will realize that the financial markets have experienced many crises in the past &#8211; and have recovered each time. A look at history will help you to better understand current turbulence and avoid panic reactions.  <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1640\" height=\"1372\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Crash_Ueberblick_Morningstar.png\" alt=\"Overview of stock market crashes\" class=\"wp-image-12970\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Crash_Ueberblick_Morningstar.png 1640w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Crash_Ueberblick_Morningstar-768x642.png 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Crash_Ueberblick_Morningstar-1536x1285.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\" \/><figcaption class=\"wp-element-caption\">150 years of constant ups and downs with a long-term upward trend: even taking inflation into account, a US dollar invested in a hypothetical US share index in 1871 would have grown to USD 31,255 by the end of January 2025. The blue horizontal line shows the duration of the bear market until full recovery. (Graphic: Morningstar)  <\/figcaption><\/figure>\n\n<p>The considerable growth of an invested US dollar in the chart above underlines the enormous advantages of a long-term investment. However, it has been anything but a steady rise over this super-long period of over 150 years. There have been no less than <strong>19 market collapses<\/strong> of varying severity.  <\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"Five_severe_stock_market_crashes\">Five severe stock market crashes<\/span><\/h2>\n\n<p>In the following, we would like to take a closer look at five particularly spectacular stock market crashes:<\/p>\n\n<ul class=\"wp-block-list\">\n<li>2020: Corona pandemic<\/li>\n\n\n\n<li>2008: Global financial crisis<\/li>\n\n\n\n<li>2000: Bursting of the Internet bubble<\/li>\n\n\n\n<li>1987: Black Monday<\/li>\n\n\n\n<li>1929: The beginning of the Great Depression<\/li>\n<\/ul>\n\n<h3 class=\"wp-block-heading\"><span id=\"2020_Corona_pandemic\">2020: Corona pandemic<\/span><\/h3>\n\n<p>On March 12, 2020, one day after the official declaration of the pandemic by the international health authority WHO, stock markets around the world plummet. The Dow Jones loses over 10%, the biggest daily loss since &#8220;Black Monday&#8221; in 1987. The following days also see a steep decline &#8211; on 16 March, the US market falls again by over 12%. And yet, just a few months later, many indices are back at pre-crisis levels.   <\/p>\n\n<p>We covered the coronavirus crash in detail in the article <a href=\"https:\/\/schweizerfinanzblog.ch\/en\/stock-market-crash-2020-what-should-investors-do-now\/\" target=\"_blank\" rel=\"noreferrer noopener\">&#8220;Stock market crash 2020: What should investors do now?&#8221;<\/a>.<\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"2008_Global_financial_crisis\">2008: Global financial crisis<\/span><\/h3>\n\n<p>Starting with the US real estate bubble (especially <a href=\"https:\/\/de.wikipedia.org\/wiki\/Subprime-Markt\" target=\"_blank\" rel=\"noreferrer noopener\">the subprime market<\/a>), the global financial system begins to falter. After the Lehman bankruptcy in September 2008, stock markets around the world come under pressure: from January to October, many indices lose 30 to 50%. The USA slips into a deep recession &#8211; and yet one of the longest stock market boom in history follows from 2009.  <\/p>\n\n<h3 class=\"wp-block-heading\"><span id=\"2000_Bursting_of_the_Internet_bubble\">2000: Bursting of the Internet bubble<\/span><\/h3>\n\n<p>The euphoria surrounding new technologies and Internet companies drives the stock markets to record highs &#8211; until reality strikes in the spring of 2000. The Nasdaq loses almost 30% in April alone and as much as 39.3% over the year. Many tech companies disappear, but in the long term the technology sector develops into a growth engine.  <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1386\" height=\"904\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Chart_Dot-com-bubble.png\" alt=\"Dotcom Bubble\" class=\"wp-image-12973\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Chart_Dot-com-bubble.png 1386w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Chart_Dot-com-bubble-768x501.png 768w\" sizes=\"(max-width: 1386px) 100vw, 1386px\" \/><figcaption class=\"wp-element-caption\">A question of investment horizon &#8211; and your own nerves of steel: even those who invested in the Nasdaq tech index shortly before the dotcom bubble burst could have multiplied their assets to this day with enough patience. (Chart: Google) <\/figcaption><\/figure>\n\n<h3 class=\"wp-block-heading\"><span id=\"1987_Black_Monday\">1987: Black Monday<\/span><\/h3>\n\n<p>On October 19, 1987, the Dow Jones loses 22.6% &#8211; in a single day. The reasons: Budget deficits, interest rate hikes and automated sales programs. Panic spreads around the world. The shock is profound, but the black clouds in the stock market sky gradually dissipate: a year later, share prices have largely recovered.   <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1300\" height=\"731\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Boersencrash_Schwarzer-Montag.jpg\" alt=\"\" class=\"wp-image-12976\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Boersencrash_Schwarzer-Montag.jpg 1300w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Boersencrash_Schwarzer-Montag-768x432.jpg 768w\" sizes=\"(max-width: 1300px) 100vw, 1300px\" \/><figcaption class=\"wp-element-caption\">An exhausted stock market trader on &#8220;Black Monday&#8221; in 1987 (Photo: T. Clark\/AP) <\/figcaption><\/figure>\n\n<h3 class=\"wp-block-heading\"><span id=\"1929_The_beginning_of_the_Great_Depression\">  1929: The beginning of the Great Depression<\/span><\/h3>\n\n<p>Perhaps the most famous crisis begins with a price slide on October 24, 1929, &#8220;Black Thursday&#8221;. What follows is a massive sell-off that leads to the worst economic crisis ever recorded. <strong>Share prices plummeted by up to 80% globally<\/strong> and it took <strong>over 20 years<\/strong> for the markets to fully recover &#8211; an extreme case that was also characterized by the <strong>lack of an economic policy response<\/strong>. <\/p>\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"2200\" height=\"1398\" src=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Grosse_Depression_CH.png\" alt=\"Great depression\" class=\"wp-image-12979\" srcset=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Grosse_Depression_CH.png 2200w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Grosse_Depression_CH-768x488.png 768w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Grosse_Depression_CH-1536x976.png 1536w, https:\/\/schweizerfinanzblog.ch\/wp-content\/uploads\/2025\/07\/Grosse_Depression_CH-2048x1301.png 2048w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><figcaption class=\"wp-element-caption\">Labor dispute in Zurich in 1935: The Great Depression not only shook the financial markets, but also led to the massive impoverishment of large sections of the population. (Photo: Swiss Social Archives) <\/figcaption><\/figure>\n\n<h2 class=\"wp-block-heading\"><span id=\"Your_long-term_success_starts_now\">Your long-term success starts now<\/span><\/h2>\n\n<p>Crises are inevitable &#8211; they are just as much a part of the markets as periods of stability and growth. But what counts is not how often the markets crash, but how you react to these setbacks. The past shows us unequivocally that markets always bounce back in the long term and you will come out stronger after stock market crashes if you <strong>stay calm, follow your plan and don&#8217;t panic<\/strong>.  <\/p>\n\n<p>Or as the legendary investor Warren Buffett aptly put it: <em>&#8220;Only when the tide goes out can you see who is swimming without swimming trunks.&#8221;<\/em><\/p>\n\n<p>Use the lessons learned from past crises to refine your own plan tailored to your individual goals and risk profile. Remember: the stock market is a marathon, not a sprint. <\/p>\n\n<p><strong>Your successful path on the financial markets begins with the conviction to remain calm &#8211; even when the markets threaten to go crazy.<\/strong>  Even in turbulent times, those who take a long-term, considered approach will be among the winners.<\/p>\n\n<h2 class=\"wp-block-heading\"><span id=\"This_might_also_interest_you\">This might also interest you<\/span><\/h2>\n\n<link rel=\"stylesheet\" href=\"https:\/\/schweizerfinanzblog.ch\/wp-content\/themes\/schweizerfinanzblog\/components\/post-list-component\/post-list-component.css\">\n\n<div class=\"post-list-componenet pt-2 pb-4\">\n\t<div class=\"row\">\n\t\t\t\t\t\t\n\t\t <div class=\"col-xl-6\">\n\t\t\t <a class=\"text-decoration-none\" href=\"https:\/\/schweizerfinanzblog.ch\/en\/stock-market-crash-2020-what-should-investors-do-now\/\">\n\t\t\t\t<div class=\"d-flex post-list-card\">\n\t\t\t\t\t<div class=\"post-list-image \">\n\t\t\t\t\t\t<div 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id=\"Disclaimer\">Disclaimer<\/span><\/h2>\n\n<p><strong>Disclaimer: <\/strong>Investing involves risks of loss. You must decide for yourself whether you want to bear these risks or not. <\/p>\n\n<p><strong>Errors excepted:<\/strong> We have written this article on the stock market crash to the best of our knowledge and belief. Our aim is to provide you as a private investor with the most objective and meaningful financial information possible. However, if we have made any mistakes, forgotten important aspects and\/or are no longer up to date, we would be grateful if you could let us know.  <\/p>\n\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sharp price falls often trigger precisely what is particularly dangerous on the stock market: emotional trading. Fear, uncertainty and the urge to take action are natural reactions &#8211; but rarely lead to smart investment decisions. In this article, we show you how we proceeded in the last correction phase, what considerations guided us &#8211; and [&hellip;]<\/p>","protected":false},"author":1,"featured_media":12949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[304,180],"tags":[],"class_list":["post-12996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisor","category-investment-strategy"],"acf":[],"_links":{"self":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/12996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/comments?post=12996"}],"version-history":[{"count":2,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/12996\/revisions"}],"predecessor-version":[{"id":13004,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/posts\/12996\/revisions\/13004"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/media\/12949"}],"wp:attachment":[{"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/media?parent=12996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/categories?post=12996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/schweizerfinanzblog.ch\/en\/wp-json\/wp\/v2\/tags?post=12996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}