Editorial: How to Navigate a Market Crash

Published 04/07/2025, 08:46 AM

Investing.com -- Investors have every reason to be losing their sleep over the recent market events. Since the S&P 500 began trading as an index of 500 companies on March 4, 1957, there have been only four other instances—besides the most recent two trading days—where it experienced a loss of 10% or more over two consecutive days. Specifically:

  • Black Monday Crash (October 16-19, 1987): -25.65%
  • Global Financial Crisis 1 (November 5-6, 2008): -10.30%
  • Global Financial Crisis 2 (November 19-20, 2008): -12.83%
  • COVID crash (March 11-12, 2020): -14.40%
  • Liberation Day (April 3-4, 2025): -10.53%

It’s no coincidence that the Fear and Greed Index has plummeted to its lowest point since the COVID-19 crash of 2020, a level previously reached only during the Global Financial Crisis.Fear and Greed IndexSource: CNN Fear and Greed Index

Those who have experienced such market crashes before know it: each time, it feels as if the world as we know it might be on the brink of ending.

But here’s the good news - it never does, and the US economy, along with the stock market, has always withstood these pressures in the long run.

It’s no coincidence that Warren Buffett had its largest cash pile ever prior to this crash or that Jamie Dimon sold $230 million in shares in February this year. Some might say they were waiting for a moment like this with open arms.

But why?

Using our historical data from Investing.com, we calculated the S&P 500 performance at different intervals (from the next day through one year) following the four previous instances when the index fell more than 10% over two consecutive trading days.

The results are widely positive across the board. This means that those who had the courage (and cash) to buy stocks after a dip like this had positive returns every time in history.

Check them out below:Stocks Performance After DropSource: Investing.com

Could this time be different? Yes, for sure, it could. However, as seen above, the odds (particularly on the one-year time frame) are certainly tilted in favor of those willing to take advantage of the lower stock prices.

Here’s How We Can Assist You in This Moment

While historical data is clear on the advantages of buying when everyone is running for the hills (be greedy when others are fearful), it’s not like buying any stock at this point will yield you massive returns.

Savvy investors would know that market crashes oftentimes mark the end of cycles, ultimately leaving losers in the past. Such was the case for names such as Cisco (NASDAQ:CSCO), which hasn’t yet recovered its market cap lost in the dot-com bubble more than 25 years ago.

Conversely, those who were able to buy fast-growing stocks amid the crash, such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), or Monster Beverage (NASDAQ:MNST), are now sitting at generational gains of 7,200%, 66,004%, and 127,477% - respectively.

(In dollar terms, this means a $1,000 investment in Monster stock back in March 2000 would be worth about $1,275,770 today.)

But the good news is you don’t have to hit the jackpot to reap above-average returns. Finding the right stocks to bet on amid a steep decline is already a tried-and-truth way to outperform.

This is precisely where Investing.com’s best-in-class data and product offering can help both free and premium users beat the market.

Free Users

Starting with our free users, our generative AI, WarrenAI,” can help you find the best stocks in the market right now by combining Investing.com’s massive data offering with best-in-class fundamental analysis models, churning out actionable results.

First, we asked it straight up:

Which are the best stocks to buy amid the current market crash?

As you can see, it gave us a list of stocks that are currently both undervalued and presenting massive upside potential.

WarrenAI’s Response

Source: WarrenAI

But supposing you’re looking for a more conservative investment, here’s what it says when asked to provide the top stocks in the market right now according to the Piotroski method of fundamental evaluation.

These stocks have a much higher likelihood to not only survive but also outperform during a market environment like the one we’re experiencing now.

Interestingly enough, many of these stocks are in positive territory this month (despite the crash):

WarrenAI on Stocks With Perfect Piotroski Score of 9

Source: WarrenAI

Investing.com users can also access several of our free predefined stock screens, such as:

* Bottom line - now might be an excellent time to discover new opportunities.

Create a watchlist to research and monitor them, helping you make informed decisions—all at no cost.

Plus, you’ll receive 2 ProTips for each stock in the market, along with analyst ratings, news, and insights from Warren AI—completely free.

Premium Members

Investing.com’s premium members also get the market’s top AI-powered stock picks at the start of every month for less than $10 a month, thus lowering risks and massively increasing the upside potential of their performance.

As a matter of fact, those following our Beat the S&P 500 strategy are up a massive 12% against the benchmark this year. Although the stocks within the strategy also took a hit lately, several names remain positive for the month, such as:

  • McKesson (NYSE:MCK)

  • Cencora (NYSE:COR)

  • UnitedHealth (NYSE:UNH)

The first two actually hit a new record high on Friday - amid the market crash - before correcting alongside the rest of the market at the close.

Moreover, those looking for geographic diversification are doing even better, with our AI-powered non-US strategies yielding even fatter results for the year, such as:

(Among several others)

These results were buoyed by picks such as:

  • Thyssenkrupp (OTC:TYEKF): +149% in 2025.

  • Iveco NV (BIT:IVG): +55.15% in 2025

  • Colab Cloud (BO:COLA): +60.01% this year

These are not magical picks; these are fundamentally solid names picked by the market’s leading AI stock-picking model, which assesses thousands of data points with investment-grade precision at a glance.

*InvestingPro members can see all our picks now here.

InvestingPro members can also check out our live updated list of the most undervalued and most overvalued stocks, making sure they track the updated performance of every stock they hold or look to buy.

*In sum, for less than $10 a month, Pro users can use AI to find great opportunities with ProPicks AI and Warren AI, and each stock gets its Fair Value, all ProTips, and so much more.

Bottom Line

There’s no question that investors have every reason to be worried about what’s happening in the market - and, more broadly, with the economy.

Market crashes like the one we’re experiencing are rare and demand a complete reassessment of many statements we assumed to be true.

However, if the history of the stock market can teach us one thing, it is that, regardless of the conditions, great opportunities remain for those able to make the right moves at this moment.

As in the 19th century poem famously cited by legendary Warren Buffett when talking about market crashes:

“If you can keep your head when all about you are losing theirs ... If you can wait and not be tired by waiting ... If you can think — and not make thoughts your aim ... If you can trust yourself when all men doubt you ... Yours is the Earth and everything that’s in it.”

Look for the links in the article above to learn more about how we can help you.

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