The Worst Times to Invest (and Why It Didn't Matter)

Every investor's worst fear: putting money in right before a crash. We looked at three of the worst possible entry points in recent history to see what would have happened if you held on.

January 2000: right before the dot-com bust

The S&P 500 dropped nearly 50% over the next two and a half years. Tech stocks were hit even harder. But $1,000 invested in the S&P 500 in January 2000 would still be worth over $7,600 today. That's a 660%+ return despite the worst possible timing.

Even more striking: $1,000 in Apple in 2000 would be worth over $319,000 today.

October 2007: right before the financial crisis

The S&P 500 would go on to lose 57% from its peak to its March 2009 low. Banks collapsed. The housing market imploded. It felt like the end.

But $1,000 invested at the 2007 peak in the S&P 500 would still be worth roughly $4,500 today. Not as dramatic as the 2000 example, but still a solid 350% return for an investor who simply held on.

February 2020: right before COVID

The market dropped 34% in about five weeks. The fastest bear market in history. But $1,000 invested in the S&P 500 in January 2020 would be worth over $2,200 today, and anyone who bought during the March 2020 low did even better.

The pattern

In every case, holding for at least 5 years produced positive returns. The stock market has recovered from every crash in history. The only investors who locked in permanent losses were the ones who sold.

Meanwhile, $1,000 kept in cash since 2000 would have the purchasing power of about $510 today. Doing nothing was the worst strategy of all.

Browse all investments to see how different stocks performed through these downturns.