Is the Stock Market Headed for Another Crash?

Is the Stock Market Headed for Another Crash?

Since President Trump took office a little more than a year ago, the stock market has been somewhat of a conundrum. Initially it was all good news, as the market reached high-water marks never seen before. However, lately it has been a rollercoaster ride, with big swings both ways.

Of course, the market will always fluctuate, but should these latest steep climbs and deep falls be cause for greater concern? Is it possible that the market is headed toward another crash? Should you start protecting your assets? Should you sell everything off in the name of saving your retirement fund?

You Can’t Plan for a Crash

When the market has crashed, inevitably it has always rebounded. The problem is you never know exactly when a crash is coming. That can lead to huge losses of wealth. In some cases, people can lose their entire savings or retirement funds. So, the real question isn’t whether or not the market will crash. The real question is what should you do to prepare for it.

There are some financial experts that are already warning of a crash, while others believe the market will steady and find stable ground. In any case, the best thing you can do as an investor is to hope for the best, but prepare for the worst.

How to Prepare for a Crash

Preparing for a crash has many different looks, but here are a few suggestions that could prove very valuable if the market does crash.

Diversity–one of the best ways to overcome a crash is to diversify your assets. In other words, if you put all your eggs in one basket, you’re much more likely to take a major hit if the market crashes. By investing in several different stocks you have a better chance of weathering the storm.

Know Your Assets–how well do you know your stocks? This is important because any stock is subject to having a bad day, so to speak. So, is your stock really a stinker, or is just suffering a temporary fall? If you know your stocks inside and out you’ll be able to judge whether or not to sell or hold.

Seek More Advice–just like when you have a medical diagnosis, it’s always a good idea to get a second opinion with the stock market. There could be completely different opinions on the same stock, so make sure you ask around and get the whole picture before making any major decisions.

Don’t Stop Taking Risks–not everyone likes the same level of risk when it comes to investing. However, you need to remember what your risk level is and stick to it. In other words, don’t stop doing what brought you success in the first place. Crashes are bad, but the market has always bounced back and sustained long-term growth. Don’t just automatically jump ship when things go south.

Be Ready to Buy When it Comes Back up–if you have the money to do it, be aggressive during the crash. Many fortunes have been made by savvy investors who have pounced when prices dropped, only to be rewarded after the market steadied.

 

We hope you found this article about “Is the Stock Market Headed for Another Crash?” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe to our YouTube Channel for more updates.

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.