The stock market has given many investors a real fright in recent weeks, because the S&P500 (SNPINDEX: ^GSPC) fell by more than 8% between mid-July and early August. Nasdaq (NASDAQINDEX: ^IXIC) fared even worse, as the price fell by around 12% during this time and officially entered a correction phase.

However, that slump appears to have been short-lived, as major market indexes recovered as quickly as they had fallen. At the time of writing, the S&P 500 is up nearly 8% in the past two weeks alone, while the Nasdaq is up about 10% in that time.

While many investors are relieved that this downturn hasn’t been worse, others are worried that this is just a temporary rebound before prices fall again. That’s a legitimate concern, especially considering how unpredictable the market has been recently.

Sometimes it can be helpful to look at how the market has performed during previous times of uncertainty. While past performance is no guarantee of future returns, here’s what history says about times like these.

To get an idea of ​​what the market is capable of, let’s look at two scenarios: one in which stock prices continue to rise and another in which prices fall significantly from their peak.

Scenario one: Stock prices continue to rise

One of the most recent and significant market recoveries occurred in 2020 during the early stages of the COVID-19 pandemic. The S&P 500 plunged nearly 34% in less than a month, causing many investors to fear that we were heading for a deep and prolonged recession. However, the market recovered almost immediately before entering a new bull market.

If you had stopped investing when stock prices started falling, you would likely have missed the earliest stages of the market recovery. Even if you had invested at what seemed like the worst time (in February 2020, just before the market crash), the S&P 500 has still delivered a total return of nearly 66% since then.

On the other hand, let’s say you sold your investments as soon as prices started falling and didn’t reinvest until January 2021 when the market was booming. That may have seemed like the safer option, but the S&P 500 has only delivered a total return of around 49% since then.

It’s nearly impossible to pinpoint the right time to enter the market, so it’s best to just stay invested no matter what. If prices go up from here, you’re in all the way.

Scenario two: Stock prices fall again

The market could continue its uptrend, but it could also fall again – possibly even crashing into bear market territory. No one knows exactly what will happen. However, a more significant downturn is always possible.

However, if a bear market is looming, it shouldn’t affect your long-term investment strategy. Even if you invest just before a major downturn begins, if you hold onto your investments long enough, you’ll almost certainly be able to generate positive returns at some point.

For example, let’s say you invested in an S&P 500 index fund in January 2000—just before the dot-com bubble burst and sparked one of the longest bear markets in history. The index didn’t reach a new high until 2007, just months before the market tanked again during the Great Recession.

However, if you had persevered and held onto your investments until today, you would have made a total return of 281% – almost four times your money. The first few years would have been tough, but patience pays off when it comes to the market.

Also, as in the previous example, it seemed safer to wait until the market was booming to invest. But if you had waited to buy until, say, January 2015 (after the S&P 500 had hit a new all-time high and was officially in a new bull market), you would have only earned a return of around 172% to date.

The market is always unpredictable in the short term and trying to buy or sell at exactly the right moment can be costly. Although it is often easier said than done, simply sticking with investments (regardless of market performance) can protect your portfolio and maximize your long-term gains.

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Katie Brockman does not own any stocks mentioned. The Motley Fool does not own any stocks mentioned. The Motley Fool has a disclosure policy.

The stock market is recovering, but is it really safe to invest in anything right now? That’s what history says. was originally published by The Motley Fool.