Why Stock Market Crashes Are Less Common Today

February 18, 2026 2 min read

Past Markets Were Very Volatile
In earlier years, stock markets moved in a very rough way. During the 1980s, 1990s, and even up to 2015–16, prices went up and down very sharply.

Big swings were common, and investors often saw sudden falls. This kind of movement was normal at that time, and people were used to seeing deep drops.

Markets Are Calmer in Recent Years
Over the last ten years, the market has become much more calm and steady. If we ignore the COVID period, which was a global event no one could control, markets have mostly stayed stable.

Even though many people feel the market is risky, the data shows that recent years have been more peaceful than the past.

Big Falls Have Been Rare
For almost eight to ten years, the market has not fallen more than 20%, except during COVID. The last time it fell close to 20% was around 2015–16, and it recovered within one year. Since then, such large drops have not happened again.

Small Drops Recover Quickly
Sometimes the market falls by 10% to 15%, but these drops usually recover within one year. These small corrections are part of normal market behavior and do not last long. Investors who stay patient often see prices move back up.

Old Crash Phases Are Largely Over
Earlier periods like 2001–02, 2008, and other years saw heavy crashes. That kind of market phase seems to be over now. Today’s markets are more mature and more stable than before, which helps reduce the chance of very deep falls.

Only Big Shocks Can Cause Major Falls
Markets can still fall sharply if a major external shock happens, like a global crisis. But in normal situations, there is limited room for very large declines. Overall, today’s market environment is steadier than what investors experienced in the past.

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    Why Stock Market Crashes Are Less Common Today