What to do if the stock market crashes? Here's my plan

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[thezyg]

Buy long dated puts when the VIX is low? Hedge yourself if you have a large portfolio.

[kiljaeden]

I invested £20k in various tech stocks almost exactly 2 years ago as my first dalliance into investing. Of course they all took a 25% dip almost immediately.

In my case my £20k went down to £14k. I just sighed, chalked it up to experience and then just left it all as it was.

When I checked on the wallet a month ago it was worth £25k.

[kw]

"In the short term the Stockmarket is a roulette wheel, in the long term it's a money printing machine"...said someone richer than me.

[spts]

Very good analysis, mate.
Just keep steady investing and ignore market crashes

[GavinLawrence]

Honestly, if the stock market crashes and there is no forthcoming policy to rescue it, or a policy error, we'll all have much MUCH worse things to worry about than a negative return on a computer screen!

[dodiloi]

There will always be inflation, so the market will always rise.

[BullBearWatcher]

Thanks for the detailed breakdown! I appreciate how calm and clear you are while explaining the stock market crash. It really helps in understanding the situation better and staying level-headed.

[awreetmeowd]

I'm a tea man myself, whatever the worry, a cup of tea always helps!

[Phil_fandbethere]

Good sound advice Toby. I think our risk tolerance is far less than what we imagine it to be. A lot of folks say they are quite happy to see a drawdown of 30-40%, but when it happens they realise they are far less happy with it!. It all comes down to time horizon. If you don't need the money for 20 years or more then a major crash is not an issue, but if you need it within 5 years it could be a big problem.

[mattsennett]

Another great video Toby👍🏻
It's so true that the best investors are those that play the long game and drip feed in no matter what. Sure we all like to stock pick from time to time but the core of anyone's portfolio should be a tax efficient index fund that benefits from a regular top up payment.

[arigutman]

If the stock market crashes, I WISH IT WOULD, but BUY BUY AND BUY!

[SmigtySmig]

This is literally my thought, Toby "If it all goes wrong, so what? I didn't need the money I invested"

As long as you live the life you want to live, you'll have no regrets, regardless of the outcome.

[MeltingRubberZ]

Market crash = everything on sale. Pull the quarters out from under your couch and buy!

[steve]

I had been adding into my savings account (4.6%) this year waiting for market correction and then buy in at good price, but a correction never seemed to come. Forecast was that Q4 would be good, so in June 24 I bit the bullet and xferred most surplus savings into my GIA. Then last week the market dived! Should I have DCA drip fed over Q1 and Q2? Anyway, I then took a risk and I sold 874 shares of IITU stock in my ISA on 18/7 (so no CGT) and then bought back 899 shares of IITU for same amount of £ on 25/7 to stay in the market. This saved me about £600 of loss even if IITU price continues to drop now. Has anyone else done this sort of thing rather than just DCA and hang on for the ride? Maybe a monthly DCA would have been best... Just can't help tinkering!

[geolykos]

I made the mistake of starting to invest in 2020 and trusting investment advisor sites like the Motley Fool. If I trusted my judgement and only invested in companies I know and like I would have been very green now. Instead Im barely after following my own advice in 2022 & 2023

[stewillo]

I have a little pot of additional cash for when the crash happens, buy more for less. However, I will always keep my monthly injection going.

[angeloton]

You are a great investor with the correct mindset. Wish you the best

[Thaitanium]

I just have a direct debit putting £200 per month on payday in to my VUAG ETF in my ISA account and just forget about it, I'll leave it for at least the next 10 - 15 years.

[kristoffscuba]

For most working people who are investing regularly, dollar cost averaging is the way to do it. Buy index funds based on sectors you like and don’t worry about the movement in the markets month to month.

[twinkletale]

Still buying even when I lost £4k in one company.

Lesson learned there but used the remaining amount to buy a quality company and now it is 10% up.