Yes, but only if the market has crashed very seriously. The same is with selling – historically it is good to sell only when markets have skyrocketed unprecedently.
Suppose I have invested USD 100 in stock two years ago. It has gained some positive or negative amount of dollars since then. What gains could I expect after one year if I invest USD 100 today? After analyzing historical data I see that future gains are almost certainly positive only when markets have had dropped more than 35% in two years from their original value. Also, future gains are almost certainly negative when markets have had grown more than 80% from their original value.
What: “Gain” is the amount in dollars one’s investment would change from the initial USD 100 invested. Investment is divided equally between Dow Jones Industrial Average and Nasdaq Composite indices.
When: Monthly data between February 1985 and April 2020