Yet John and his wife survived the bursting of the tech bubble as well as the great financial crisis a few years later because they had a plan in place that accounted for the
possibility of down markets.
I have started a small cash fund to keep handy... I anticipate a few
days of down market towards the end of June... with the interest rate drama, Britain's exit from Euro decision, etc..
These illustrations prove that you'll actually make more money if you invest throughout the
course of a down market that eventually recovers, than if you invest regularly during a market that instead, grows steadily (again, results are different from lump sum investing, which will favor consistently upward trending markets):
Tax - loss harvesting may be an opportunity to reduce your taxable income, softening the
blow of a down market.
Downside protection also remained strong across the full - time period, with the strategy beating the benchmark in 75 %
of down markets.