- A fall only becomes a loss if you sell: the global index has always ended up regaining its highs.
- Keep your contributions going: during a fall, the same amount buys more units.
- In Switzerland, selling at a loss brings no tax advantage: losses are not deductible.
What past falls show
The global index has already lost more than half its value, then won it back and went far beyond. Its worst fall since 1987 was about 57%, between October 2007 and March 2009. Since then, there have been other falls, in 2018, 2020 and 2022. Yet, in dollars, the index was multiplied by six between September 2011 and September 2026.
| Year | Global index (in dollars) |
|---|---|
| 2015 | -0.3% |
| 2018 | -8.2% |
| 2022 | -17.7% |
Source: MSCI, MSCI World index, annual gross returns in dollars. The other eleven years from 2012 to 2025 were positive, and so was 2026 at the end of September.
Swiss shares are not spared: the SMI lost about 14% in 2022, before rising again in the following years.
The reflexes that cost
Selling during the fall is the most expensive reflex: it turns a temporary loss into a permanent one. You then have to guess when to buy back, and the best days on the market often come right after the worst. Morningstar's studies show that investors earn on average about one point a year less than the funds they hold, because of these round trips.
- Stopping your contributions just when prices are low.
- Checking your portfolio every day, which pushes you to act.
- Switching strategy in the middle of a fall, to a more cautious one, just before the recovery.
The reflexes that protect you
- Check your reserve: if your spending for the coming months is covered in an account, you will never have to sell at the wrong time.
- Keep your monthly plan going: the same amount buys more units when prices are low.
- Rebalance once a year: after a sharp fall in equities, returning to your target split means buying low, without having to decide it.
- Look less often: once a quarter is enough for a 20-year investment.
If a 30% fall keeps you awake at night, your share of equities is too high for you. Better to reduce it calmly, outside a crisis, than to sell in the middle of the storm: see asset allocation.
What Switzerland changes
For a private investor in Switzerland, gains are not taxed, and losses are not deductible: selling at a loss brings no tax advantage. In other countries, people sometimes sell to "realise" a loss and cut their taxes; here, it serves no purpose. Your taxable wealth simply falls with the value of your securities on 31 December.
Going further
Prepare your 3a before retirement. With several 3a accounts, you can withdraw first the ones that have fallen least. And if you are still working, the withdrawal can be postponed up to 5 years beyond the reference age.
A large sum to invest during a fall? Low prices are rather an opportunity. If the idea worries you, spread it over a few months on a plan fixed in advance: see lump sum or monthly instalments.
Write your rule before the next fall. "I keep my contributions going, I rebalance in January, I do not sell." Decided calmly, it is much easier to stick to when the headlines are frightening.
Your allocation through the falls1'500 paths, bad years included.
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Path “Investing: the right decisions” · step 4 of 6
Frequently asked questions
Should I sell when the market falls?
Generally not, if the money is invested for more than 10 years. Selling turns a temporary fall into a permanent loss, and you then have to guess the right moment to buy back. In the past, the global index has always ended up exceeding its previous highs.
What was the worst fall of the global index?
Since 1987, the worst decline of the MSCI World index was about 57%, between October 2007 and March 2009. In 2022, it lost almost 18% over the year, in dollars.
Should I keep investing during a fall?
Yes: a monthly plan then buys more units for the same amount. It is precisely during falls that regularity pays off most.
Can I deduct stock market losses from my taxes in Switzerland?
No. For a private investor, capital gains are not taxed, and losses are not deductible. Selling at a loss therefore brings no tax advantage, unlike in some other countries.
And if the fall comes just before I withdraw my 3a?
If you have several 3a accounts, withdraw first the ones that have fallen least, or the account ones. If you are still working, the withdrawal can also be postponed beyond the reference age, by up to 5 years.
Sources: MSCI, MSCI World index factsheet at 30.09.2026 (annual returns, maximum drawdown since 1987, cumulative performance since 2011) ; BlackRock, iShares SMI ETF (CH) factsheet at 30.09.2026 ; Morningstar, “Mind the Gap” ; DBG / LIFD art. 16 para. 3 (private capital gains exempt) ; BVV 3 / OPP 3 art. 3 (3a withdrawal).