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  • Writer's picturevishal wire

Don't Panic! A Guide to Handling a Market Crash

It’s normal to experience a range of emotions when the market is down, and many investors choose to wait out downturns until it’s time to invest again. However, if you don’t have an investment strategy, you might find yourself waiting far too long to get involved with the market again – which could cost you big money in terms of earnings and returns. Consider these four strategies when the market’s down, so you can make smart investments that will help you ride out the storm and build your wealth over time.

What is Market Crash?

A market crash is when stocks and other investments lose value, usually precipitously. The market is driven by sentiment and faith in its own growth. When there’s a sudden loss of faith in an asset class, or even an entire market, things can rapidly turn south—and fast. Of course, no one knows for sure when or if that might happen; those who say they do are lying (or making risky bets). But that doesn’t mean you should panic!

When will there be another market crash?

Nobody can say for sure when, but it will happen again. And there’s no way of predicting how far or how low it will go. This leaves many people worried that they’ll be left out of pocket. So what are you options? Here are some tips on how to handle market down.

So What Should I Do?

First and foremost, don’t panic. If you want to survive a market crash, follow these three guidelines:

know what causes them, manage your expectations and keep your priorities straight. At their core, market crashes are created by uncertainty—they occur when people lack information about how risky financial assets really are.

Can I Still Make Money In A Bear Market?

Unless you’re Warren Buffett, no one can predict what stocks will do with any level of certainty. But that doesn’t mean that new investors should throw in the towel when markets go south. It’s never a bad time to take some of your money out of stocks and put it into safer investments like bonds or savings accounts—especially if there are signs that markets are becoming increasingly volatile.

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