Sportello
Well-Known Member
A stock market crash would affect many every day Americans. Sorry you don’t know that.
dow jones
- Thread starter Jkloc420
- Start date
Thebrownblob
Well-Known Member
Hear a maga there are maga everywhere in maga maga.
Thebrownblob
Well-Known Member
Every American that has not taken the precautions necessary to shield their selves from a stock market crash are not doing their due diligence. Sorry you didn’t know that. The hedge funds managers and the bankers will they’ll be the ones jumping out of windows.
Sportello
Well-Known Member
I'm sorry that you don't have a 401k or an IRA, or a pension, or any other investments that depend on the stock market.
Up In Smoke
Well-Known Member
The face of trading has changed drastically over the past handful of years. Nearly 50% of the US market is traded through the options exchange. Large entities can move in and out of the market with relatively little risk to a market correction. The buy and hold retail investor is at the greatest risk for market volatility.
Buy and hold has worked that pretty good for Warren Buffett
Up In Smoke
Well-Known Member
Look again, his use of options trades took him from good investor to iconic investor. European options specialists.
There are natural business cycles that keep the economy strong including necessary recessions. But when the government tries to artificially keep recessions from happening what you end up with are bubbles that burst a lot more strongly than would have happened without the government interference. And, with the quantitive easing, recessions have been pushed back until now we're looking at an everything bubble that could lead to a deflationary spiral, a depression, that could take decades to recover from. It happened to us in the 30's, and Japan is only now recovered from a deflationary period that started in the 90's. China and Germany are both in serious danger, and we are too. I hope all these experts I'm reading are wrong but the government that put us here doesn't inspire confidence to get us out of it.
Next Day Err
Well-Known Member
What precautions should we take to shield ourselves from a stock market crash?
Don't put all your eggs in one basket especially in the market is at all-time highs
History repeats itself
Thebrownblob
Well-Known Member
Diversify? SMH
Next Day Err
Well-Known Member
Agreed. Most of my retirement is in funds with thousands of companies in them. My favorite being VT.
Next Day Err
Well-Known Member
Right, but that’s still not a “shield”. It’s a proven strategy to buy diversified funds but that’s not a shield to prevent financial harm if people panic sell.
Don't be afraid to take the little profits off the table and put on the sidelines right now
Thebrownblob
Well-Known Member
I didn’t say you would be completely shielded. mitigating your loss so you can get back on next market upturn.
Next Day Err
Well-Known Member
I have a huge chunk (by my standards) on the sidelines in preparation for a possible house purchase next year. So I’m going whole hog with other investments. 95/5 stocks/bonds basically.
Next Day Err
Well-Known Member
I do my best not to react to financial news. By the time it’s news the price of assets is already baked in. I just buy as much as I can every week and hold on for dear life.
Thebrownblob
Well-Known Member
If you’re still relatively young with a lot more time left to work, it’s best not to look at too much of that financial news. Just keep putting your money in.
And 30 years later....
It's a different game
