What Happens to Your Investments If the Stock Market Crashes?

By Katie Brockman – Mar 21, 2026 at 7:15PM ESTKey PointsInvestors are becoming increasingly concerned about the market's future, new surveys show.If the market crashes, there's a good chance your portfolio will lose value.However, the market's long-term future remains promising.More than half of U.S. investors feel pessimistic about the market's future, according to the most recent weekly survey from the American Association of Individual Investors, published on March 18, 2026. That figure is an increase from 46% last week and just 35% two weeks ago. With Americans feeling increasingly concerned about potential volatility, it's wise to know what, exactly, might happen to your investments during a market crash or recession. For those with money invested, there's good and not-so-good news. Image source: Getty Images. The market's long-term future is still bright Nobody knows what the market will do in the short term. However, if we face a bear market, crash, or recession, your investments will almost certainly lose value. In some cases, that volatility can be severe. During the Great Recession, for example, the S&P 500 lost more than half of its value between 2007 and 2009. In other words, if you'd had $10,000 invested in an S&P 500 ETF in December 2007, that investment would have been worth around $4,600 by March 2009. ^SPX data by YCharts The good news, however, is that losing value is not necessarily the same as losing money. The only way to lose money in the stock market is to sell your investments for less than you paid for them. In the previous example, if you'd bought your S&P 500 ETF shares for $10,000 and sold them for $4,600, you'd have locked in losses of more than $5,000. But if you'd simply held your investment until the market recovered, it would have regained all of its lost value without you losing anything. In fact, if you'd invested $10,000 in an S&P 500 ETF in December 2007 and held it for 10 years, you'd have more than doubled your money. ^SPX data by YCharts A long-term outlook is your best friend when you're investing in the stock market. No matter how rough the short term may be (and it can be nauseating at times), the market as a whole is all but guaranteed to see positive total returns over a decade or two. The key to ensuring your portfolio survives The market itself has a flawless track record of recovering from crashes and recessions, but that doesn't mean that each individual stock will pull through. If you're investing in shaky companies that aren't strong enough to survive volatility, there is a good chance you'll lose money during a recession. Stock price alone isn't necessarily indicative of a strong company. Even weak organizations can thrive when the market is soaring and investors are excited to buy, so underlying fundamentals are far more important. Healthy organizations that are on solid financial footings and have clear advantages over their competitors are far more likely to bounce back. They might still lose value in the near term, but that's normal. If you hold these stocks for at least a few years, your portfolio has a much better chance of surviving even the worst market crash or recession.Read NextMar 21, 2026 •By David DierkingForget Rate Cuts: What if the Fed Needs to Hike Rates in 2026?Mar 21, 2026 •By Sean WilliamsLook Beyond Soaring Oil Prices! If a Stock Market Crash Takes Shape Under President Donald Trump, These 2 Catalysts Are Likely to Cause It.Mar 20, 2026 •By Jeremy BowmanOil Shock: What History Says About the Stock Market and Rising Energy PricesMar 20, 2026 •By Josh Kohn-LindquistStock Market Today, March 20: S&P 500 Drops for Third Day, Fourth Week in a RowMar 20, 2026 •By Sean WilliamsOil Prices Are Skyrocketing -- and 40 Years of History Point to a Huge Move in Stocks Over the Next 12 MonthsMar 19, 2026 •By Emma NewberyStock Market Today, March 19: Brent Crude's $119 Spike Rattles MarketsAbout the AuthorKatie Brockman is a contributing writer at The Motley Fool covering retirement, Social Security, and investing fundamentals. Prior to The Motley Fool, Katie held various writing and editing roles at companies ranging from small start-ups to multimillion-dollar brands. Her work has appeared in USA Today, Inc magazine, and other authoritative media outlets. She holds a bachelor’s degree in business administration and management from Illinois Wesleyan University.TMFKatieBrockmanStocks MentionedS&P 500 IndexSNPINDEX: ^GSPC$6,506.48(-1.51%)-$100.01*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.