I still remember the gut - wrenching experience of checking my 401 (k) balance after the
stock market crash of late 2008.
In the most recent stock
market crash in 2008 - 2009, the stock market lost 54 % of it's value from market top to market bottom.
Moreover the flexibility of cash value life insurance allows you to access the funds for other investments when opportunities are made available, such as
during market crashes and bubbles popping.
If market crash tomorrow, I would get excited because I could buy more high quality stocks for cheaper price.
To protect my capital
from market crashes and others business risks, I try to buy stocks with a margin of safety.
While people look at stock
market crash as something that is entirely bad, I will like us to look at it from a different angle.
There is no way to accurately predict when the
next market crash will occur or what markets will be doing when you're ready to retire.
Young investors should actually hope
for market crashes or poor returns as they make periodic retirement contributions.
Many homeowners got in trouble in the
last market crash with investments and lost their homes.
The good news is that stock
market crashes don't matter as long as you still earn your dividend.
This kind of people may end losing everything back to the market any time stock
market crash occurs.
While the
crypto markets crashed soon after the Chinese ban, they were able to recover somewhat in the next few weeks.
The older you get, the more conservative you want to be so your money doesn't all disappear in a
big market crash right before you retire.
This emotionally - charged behavior is one of the main reasons that the stock
market crashed so dramatically.
While it is not hard to find evidence after the fact, there is very little evidence that anyone can consistently and repeatedly
predict market crashes.
They stopped collecting in 1991 when the
art market crashed and they sold off the majority of their works.
This last point, of course, used to be taken as a guarantee: the
property market crash of 2006 — 8 dissolved this misconception.
Of course, income stocks companies may be able to declare the same dividends they were paying before stock
market crash happened as this may not affect their earnings.
Right after the
mortgage market crash, many condo buildings had tough financial problems because owners were not paying their dues.
Even amid future regulatory constraints, Chinese Bitcoin miners could withstand a
massive market crash due to the low electricity costs in the country.
However, equity investments are risky and in
case markets crash in the year of investment, recovery may take a long time.
I would suggest the
largest market crashes likely to happen in your life are probably in the 40 - 50 % range — not 100 %.
Let's now assume that there is a stock
market crash leaving the stock price to drop to $ 5 per share.
My brother and I came up with the idea of developing own games, but the PC
market crashed around that time period.
Usually, blue - chip companies considered as «safe» because they have survived
several market crashes and challenges over the courses of their life.
Similarly, selling stock market insurance through put options earns consistent returns until a 1987 - or 2008 -
style market crash strikes.