If a Stock Market Crash Is on the Way, History Says This Is the Smartest Thing Investors Can Do
2026-07-20 16:15
•Adam Spatacco •The Motley Fool
•••• ••• Axe Capital view
Playing It Smart When the Market Looks Shaky
Focus on quality and durability rather than trying to time a potential crash.
The buzz around a possible crash, especially after the S&P 500’s sharp 83% gain sparked by AI excitement, is nothing new. While valuations may feel stretched and big tech stocks dominate—much like the lofty Prosus and Naspers weighting on the JSE—history reminds us that markets always find their footing. Chasing timing is a fool’s errand. Instead, anchoring your portfolio around solid, blue-chip companies with proven business models is wiser. Think of South African stalwarts like Standard Bank or AngloGold Ashanti; they weather cycles and tend to deliver steady returns over time. A catch? If a prolonged economic shock hits local or global markets harder than expected, even these names could stumble. But for most, holding quality through volatility beats frantic buying and selling. this is just my opinion and not financial advice
Buy or hold blue-chip JSE stocks like Standard Bank and AngloGold Ashanti, avoiding rash reactions to headlines. Trim exposure to high-valuation, tech-heavy plays like Prosus if you’re nervous about an immediate correction.
- Prosus
- Standard Bank
- AngloGold Ashanti
- Global economic slowdown impacting commodity prices
- Rand volatility hurting multinational earnings
7/10
Despite the S&P 500's 83% gain since the AI revolution began in late 2022, concerns about elevated valuations and heavy concentration in dominant tech stocks have sparked speculation about a potential market correction. However, historical analysis shows markets have always recovered from downturns. The article recommends maintaining a long-term mindset by investing in quality blue-chip companies with durable business models rather than attempting to time the market or engage in reactive trading.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Adam Spatacco
Categories: Technology, AI, Semiconductors, Equities
Tickers: AAPL, MSFT, NVDA
Sentiment: Positive - Mentioned as part of the dominant tech concentration in the market but not specifically analyzed. Included in the broader category of blue-chip companies investors should consider.
Keywords: stock market crash, market correction, artificial intelligence, S&P 500, valuation concerns, long-term investing, bear market, profit-taking
Insights:
- AAPL: Neutral: Mentioned as part of the dominant tech concentration in the market but not specifically analyzed. Included in the broader category of blue-chip companies investors should consider.
- MSFT: Neutral: Mentioned as part of the dominant tech concentration in the market but not specifically analyzed. Included in the broader category of blue-chip companies investors should consider.
- NVDA: Neutral: Mentioned as part of the dominant tech concentration in the market but not specifically analyzed. Included in the broader category of blue-chip companies investors should consider.