The S&P 500 is rising for a fourth straight year and could gain more than 100% over this period, which may lead some investors to worry that high valuations could bring a crash. The article explains that crashes are part of the market cycle and typically occur when an index loses 20% or more in less than a week, often triggered by fear that prompts investors to sell. It recommends holding quality stocks with competitive advantages and earnings strength through downturns rather than selling, and highlights that Warren Buffett bought stocks for his personal account during the 2008 financial crisis. Buffett wrote in 2008 that the market would likely move higher well before sentiment or the economy turned up.
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