Plain-English definitions, reviewed by an independent investor
Market Crash
A crash is a sudden, severe drop in prices over days, driven by panic, not fundamentals alone.
A crash is a sudden, severe drop in prices over days, driven by panic, not fundamentals alone.
(A sharp, fast, broad plunge)
Why it matters
It is the event that tests whether your plan was real.
Common confusion
Crashes are obvious only after; trying to time them is futile for most.
Frequently Asked Questions
Crash vs correction?
A crash is faster and deeper; a correction is a gentler 10–20% dip.
What to do in a crash?
Stick to the plan; panic selling locks in losses at the worst time.