Should You Sell Your Stocks Right Now? History Offers a Crystal-Clear Answer.

Major market indexes have tumbled in recent weeks, with the S&P 500 (^GSPC 1.67%) down nearly 6% from its high last month and the Nasdaq Composite (^IXIC 2.15%) falling close to 9% from its peak, as of this writing. Recession fears are also ramping up, as surging oil prices put pressure on the economy.

So what does that mean for investors? If the U.S. enters a recession in 2026, stock prices could plunge. Fortunately, history offers a clear answer to how this might affect investors’ strategies.

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The future is bright for investors

With stock prices steadily dropping, it may be tempting to sell your stocks now before they lose any more value. However, history suggests that holding your investments is the more lucrative choice.

So much of the short-term future is uncertain right now. While some investors worry a bear market is on the horizon, economists at Goldman Sachs only predict a 30% chance of a U.S. recession beginning in the next 12 months. While that’s still an increase from previous forecasts, a recession this year isn’t guaranteed.

What is almost guaranteed, though, is the market’s ability to thrive over time. To be clear, nothing is 100% certain when it comes to the stock market. But major market indexes have a century of history proving that they can survive even the most severe periods of volatility.

In the last two decades alone, the market has faced historic downturns. In the early 2000s, for instance, the U.S. faced not only another war in the Middle East but also the dot-com implosion and collapse of the tech industry. Then, as soon as the market recovered from that downturn, the Great Recession began.

Despite all of that volatility, however, the S&P 500 has earned total returns of more than 623% since January 2000.

^SPX data by YCharts

Of course, hindsight is 20/20. If investors had known the dot-com bubble was about to burst, selling beforehand would have been a financially smart move.

In most cases, however, there’s no way to know whether we’re in a bear market or recession until we’re already deep in the thick of it. By that point, stock prices will have typically fallen so far that selling would result in steep losses.

This makes it incredibly tough to time the market effectively. If you sell now and stock prices bounce back, you risk missing out on potential gains. But if you wait until we’re already in a recession to sell, you risk locking in losses.

The best move investors can make right now

Selling your stocks now may seem like the safer option. If history shows us anything, however, it’s that holding your investments for the long haul can be more lucrative and less risky.

With a long-term outlook, you don’t need to worry about selling your stocks at just the right moment. Your portfolio may lose value in the short term if we face a recession, but over time, strong investments will recover and deliver positive total returns.

In fact, right now can actually be a smart time to buy more stocks. With stock prices falling, many investments are more affordable than they’ve been in months. By loading up on high-quality stocks and holding them for at least five to seven years, you’re far more likely to make it through a recession unscathed.