Should You Prepare For a Market Crash?

Should You Prepare For a Market Crash?

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[PapaBravo]

Time in the market always beats timing the market.

[AustinMathias]

People will never learn to not let their emotions control them.

[BiggMo]

(Brian’s Troll here) the missing element to this (for many) is job insecurity. Many middle to low income earners, even some high earners that are tradesmen, may not have the resources to continue buying if the markets are negatively impacting their employer or industry.

I’m in the housing industry, and much of the labor is piece work. It’s feast or famine.

[srconrad]

OTOH, if you are retired, you have to always be ready to withstand a market crash as well as take advantage of a market up turn. That's why we keep a higher percentage in cash/CDs/bonds/etc and then the rest in stocks.

[amerlin]

IF (?) you can miss a 20% correction that is HUGE.
However, you have to be right twice - when to get out and when to get back in.

[ds]

I invest 20% in my monthly s &p 500. I keep 5% going into a treasurary money market where my emergency fund is. Don't know when but know what goes up must come down. I use that at boost. Example, I used that during covid to load up. I also got a rental in 2013. I am always investing the s &p but alittle goes into the opportunity bucket

[chemquests]

No one should anticipate a crash because no one ever knows when they’re going to occur. If you think you know, you’re wrong.

[skateordie]

I think this decision depends on what phase of your life you're in. If you are in the post accumulation phase, you should have a sufficient cash equivalent to draw from during down years so you don't have to withdraw from your retirement accounts.

[Dogberto]

(this is not financial advice. I'm an idiot on the internet)

Anticipating a crash, you could buy an inverse ETF, short an asset, or you can keep buying as the asset gets cheaper-- depending on fundamentals or your strat on "catching the falling knife."

tough to say. Hindsight is always 20/20 :(.

[cscorona]

Most people do not hold anywhere near enough cash or other safe liquid assets - and this question proves it. People are overexposed to the market, because they are told to shove everything beyond 3-6 months of “emergency savings” into the market.

Most do not have the risk tolerance for that, which means people make bad investing decisions.

Hold enough cash to the point where you literally don’t even look at your investment statements. That might be 1-2 years worth of income.

Stay liquid, stay safe, stay nimble.

[MrRustyBob]

Suppose you're no longer in the accumulation phase.

[juliolopes]

Hedge your bets, keep $3k in cash, it’s your “in hand” emergency fund.

[jdmulloy]

Wish I had yeasr worth of savings. Just got laid off. With all the layoffs happening, how can we not have a recession this year? But the stock market loves layoffs, so companies swimming in cash lay people off, even when it's not necessary.

[norpfuseman]

You should hold. The crash ain’t till 2026 -27 😂and even then you should probably hold unless you’re in bitcoin

[Yannick]

How about aswering the question. Being scare of a crash might effect is mental health. 5-10 years bond and money market could be a good idea. High dic stock like telecom and utility will probably be more stable during uncertainty.😊

[tincan]

I think the issue is more the inflationary spiral - those 20% gains are largely offsets of inflationary losses. The question is how to prepare for monetary instability and if the powers that be pull the rug if/when Trump wins

[semaar]

"So freeing whether it goes up or down. Buy, buy."
Slight problem for most. Dont have enough to "Buy, buy" Bye, bye. ;)