Worried About a Stock Market Crash? History Says Don't Sweat It.

So far in 2026, the S&P 500 index (^GSPC +2.91%) is down roughly 7%, but the ride has felt much worse, as a series of events has hampered market returns. Whether it’s the Iran war and the volatile oil prices that followed, persistent tariff and inflation concerns, a weakened consumer in a K-shaped recovery, or the potential for interest rates to rise and further hinder the housing market, there’s no shortage of reasons to worry about a possible stock market crash.

That said, three historical indicators suggest investors shouldn’t panic – especially long-term investors who are looking to hold stocks for decades. Here are those three indicators and why they combine to give me all the confidence I need to keep adding money to the market every week, even amid the market’s current tumult.

1. The January barometer

This historical indicator is the most peculiar of the trio to me, but I find it fascinating (and a confidence booster) nonetheless. LPL Financial found that since 1950, when the S&P 500 delivers positive returns in January, it goes on to post positive returns for the full year 89% of the time. In these years, the index has risen an average of 16.7%. With the S&P 500 rising 1.5% in January this year, history suggests the odds lean in our favor for 2026.

That said, there’s no clear reasoning for why this indicator generates such strong results. It could be investor optimism at the start of the year, broader market momentum, New Year’s psychology, or astrology (joking, I think). Regardless of the reason, an 89% hit rate is too impressive to ignore, especially given a sample size of 75 years. While I wouldn’t advise building a quantitative investing strategy around the January barometer, it is a nice feather in the cap of long-term investors looking to add to stocks this year.

Image source: Getty Images.

2. U.S. stock market resilience facing geopolitical events

Ryan Detrick, chief market strategist with the Carson Group, compiled a list of dozens of geopolitical and historical events (shock events) that occurred since 1940. He found that despite some of these events being the darkest days in recent history, the median market return of the S&P 500 12 months later was up 7.4%. Even in the face of these challenges, the market was higher one year later 63% of the time – which almost exactly matches the notion that the broader U.S. market rises two years in every three.

It’s entirely possible the shock events in 2026 could cause the year to fall into the 37% of the time where the market doesn’t go higher. But that’s not different than any other year, essentially, major geopolitical event or not, so I’m happy to just keep on adding each week.

3. Short-term catastrophes, but long-term “protopia”

Detrick’s data shows that short-term catastrophes get all the attention, but the market gradually rises over the long haul. This notion rhymes with one of The Motley Fool co-founder David Gardner’s sayings, that “stocks go down faster than they go up, but go up more than they go down.” Technology writer (and Rule Breaker podcast guest) Kevin Kelly similarly explains this idea in relation to everyday life, explaining that negative news often steals the headlines, but that we actually live in a “protopia,” or “a state that is better than today than yesterday, although it might be only a little better.”

Investing will likely never feel easy – especially in an environment like today’s. But if you stick to long-term principles, the reward will be worth the cost of admission. Detrick summed this up beautifully in an interview with The Motley Fool, stating:

The reality is on average, you see a 10% correction once a year, you see a bear market about every three-and-a-half years. You see a 5% mild pullback four times a year and a 3% (pullback) seven times a year. A bunch of numbers. I get it. Just know that it will be scary, will be uncomfortable, but long term investing is one of the best ways to create wealth, one of the best ways to beat inflation, and a lot of times when it’s scary is when you want to really step up.

Stocks to buy when it’s scary

Despite the ongoing market mayhem, there are a number of interesting stocks that have caught my eye recently:

• E-commerce and cloud-computing juggernaut **Amazon **trades at 15 times cash from operations, its lowest mark since 2010.
• Latin American e-commerce and fintech behemoth MercadoLibre trades at 31 times forward earnings, despite growing sales by 45% in its last quarter.
• Better-for-you grocer **Sprouts Farmers Market **trades at just 14 times earnings, despite its long-term plan to nearly triple its store count.
• Animal healthcare leader **Zoetis **trades at just 17 times forward earnings and offers investors a 1.8% dividend yield, while continuing to dominate its growing niche.

These are just four of many promising stocks trading at reasonable valuations right now. Emboldened by the three historical indicators listed in this article, I look forward to buying these stocks (and many others) while the ongoing turbulence persists.