What If The Stock Market Crashes?

preface

After the global financial crisis, the stock market has been operating well. Will it last, or will the sharp decline in the market end all this? Therefore, no one knows that it is very important to set appropriate financial goals and use strategies in order to consider possible or impossible situations.

What if the stock market crashes?

The stock market crashed in 1987. Black Monday Many investors have lost their life savings and their wealth has been wiped out. The surviving generation should be very clear about what happens when you put all your eggs in one basket like many investors. I mean, investors borrowed money to buy stocks, and they used the value of stocks as collateral. The market When they fall, the value of their shares is only a fraction of the money they borrowed.

The 1987 crash was the most serious after the 1929 Wall Street crash. For nearly 60 years in the calendar from 1929 to 1987, investors should assure themselves that there will not be another collapse during their lifetime.

So what should investors do when the market falls?

Here are my five suggestions:

1 Calmly

Don’t worry, the market is like a roller coaster. Treat the market as a long-term investment “If you are young, you have time to be with you.” You have time to recover from financial setbacks. Even at the age of 50, there is still about 15 years to retire, so there is no need to be too conservative, but those who cannot bear the rapid decline of the market will not agree. It all depends on your temperament.

If you are approaching the so-called “conservative investment”, financial advisers can guide you to a more conservative investment. Retirement age

Please stick to your financial plan.

although there are negative reports in the newspaper, it is important to stick to your original plan, which will undoubtedly occur after the collapse. When planning your financial strategy, your plan should take into account the possibility of a stock market crash. Stocks can give investors a roller coaster ride and insist on compensation.

Don’t try to seize the opportunity of the three markets

It is time, not opportunity, to repay shareholders. There are few investors who have the knowledge to predict the stock price flow, while those who predict and use the stock price flow are called insider trading, which is illegal. Investors should first learn to trust their own judgment when deciding what stocks to buy.

4 Saving and investment maintenance

Consistency of market incentives. When there are so many negative emotions after the stock market crash, the investment market will be rewarded. Fortunately, take care of the brave: “In the absence of too many negative and uncertain situations in the market, the advantage of investment is that you can buy stocks at a cheap price. As the market recovers, investors will gradually follow the trend. This will give you a chance.

5 Listen to the right people

The collapse of the stock market will be the focus of the news in a few weeks, and suddenly financial experts will come forward to provide advice on how to use your funds. Smart investors distinguish between good, bad, and totally stupid advice.