How to Invest In The Next Stock Market Crash

[@TobyNewbatt]

Join my community - bit.ly/TobysCommunity See you there :)

[@pseudoprof]

Joined!

[@AmberHeardo]

There’s an equal chance for profit or loss in every market crash or collapse. I’ve seen people amass up to $1m during downturns, and even thrive in a strong economy if they’re prepared and informed. Without question, someone is getting wealthy from this bubble or collapse.

[@HyunBNguyen]

I completely agree. It's not just about the dividends or profits, Diversifying a portfolio can be a smart move and i always advise one gets a professional to help out.

[@NicoleAniston-o]

The issue is most people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt, no offense. In general, Financial Consultants are ideal reps for investing jobs, and at firsthand encounter, since Jan.2020, amidst covid outbreak, my portfolio has yielded massively in ROI, summing up to 7-figures as of today.

[@Sylvesterhunter870]

I'm intrigued by this. I've searched for financial advisors online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?

[@NicoleAniston-o]

My CFA Melissa Elise Robinson, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

[@Sylvesterhunter870]

no bs! curiously copied and pasted her name on the web, her site came up at once, she seems highly professional and well matched for the job.. thanks for putting this out

[@ChrisShawUK]

I hit the GFC ten years into my investing journey and it was sobering to see the rapid falls which not only wiped out the meagre ten year growth, it pretty much came out break even on contributions. Anyway, I did exactly what you suggest ... I carried in pumping in the max ISA allowance every year. I was investing 100% FTSE 100 at the time. The net result was indeed that mathematics works... By 2016 everything was very green. I stopped work three years later, aged 51

[@davem.4003]

Being able to max out your ISA every year is remarkable in itself and is not achievable by the average employee. Putting that to one side, while I agree with the general principle of what Toby is saying, how different would your situation have been, if you were a few years older and targeting retirement in 2013-2014? You would have taken a much bigger hit, you would have much less invested near the bottom and therefore much reduced benefits from that growth. It would probably have been necessary to continue working for another 3-5 years unless you had converted to cash at the peak, which is timing the market.

[@ChrisShawUK]

@@davem.4003 the key thing to understand about drawdown is you don't need all your money at once. You should never "convert everything to cash". As it happens, six months after I stopped work, we had COVID and my portfolio dropped 33%. So my experience is the same as your example of retiring in 2014. I keep 4 years of spend in cash and the rest invested. There's no point in worrying about what the market is doing in any moment

[@james989]

Great advice - tbh younger investors should learn to love stock market crashes as it benefits them massively. I topped up on CSP1 and VHVG in the August downturn and glad I did! You are also receiving dividends during the down times as well as the up !

[@vinay4886]

Beg to disagree with what you said at the end, Toby. It’s actually easier to invest when the index is going down as you trust you’ll reap rewards when the index goes back up again eventually (months or years). When the market is going up, it’s actually harder as you constantly keep expecting a crash and fear you’ll be left ‘holding the bucket’…

[@ChrisShawUK]

You should invest whether it's going up or down is the main point.

[@j.b607]

@@ChrisShawUK I think You missed His point

[@ChrisShawUK]

@@j.b607 the point is it's neither easier or harder to invest when it's going up or going down. I've invested each year since 1998. There's been lots of market movements in that time. Just investing regardless is the thing that requires patience and focus. It doesn't matter what the market is doing.

[@aldozilli1293]

​@@ChrisShawUKsurely starting investment when the market has crashed is the ideal scenario. If I had £20k to start investing I'd want that to be after the crash has happened.

[@ChrisShawUK]

@@aldozilli1293 honestly, I wouldn't wait until you had 20k and then wait a bit longer until you think the bottom is reached. The ideal scenario is to start straight away. Save your first £1000, then invest immediately in the market. Then save another £1000 and invest immediately in the market. Rinse and repeat for two decades and you'll have accumulated a nice pot. The problem with overanalyzing is that you don't start. And if you don't start, you're frittering away your runway of compounding time.

[@sarawilliam696]

Markets look like 2015-16. Probably going back to all time highs, but will probably go sideways until fed signals rate cut, Recently sold 25% of my $285k portfolio comprising of plummeting stocks that were recommended by certain financial KZbinrs, quite devastating!

[@KaurKhangura]

not their fault, the stock market seems to be more of a casino for gamblers now than a place for investors. even if you were averaging down on ailing companies, its your duty to properly research, buying the dip does not guarantee a rebound

[@brucemichelle5689.]

The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.

[@carssimplified2195]

Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.

[@brucemichelle5689.]

“Aileen Gertrude Tippy” is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment

[@carssimplified2195]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@ericscott6864]

US citizen. I max my Individual Retirement Account (IRA). I divide the max yearly contributions by 52 and buy that each week. Done this for decades now. Yes this has worked fabulous for me.

[@bentp4891]

I've been waiting for the next stock market crash for the last two years. Every time I think its too high to invest now it just goes higher

[@kw8757]

Perfect example of why you don't try to time the market. Think of all the gains and returns you've missed out on over the last two years.

[@benji9930]

But at spme point someone is getting nailed wheb they buy at the peak and then crashes. Who wants to be that person?​@@kw8757

[@procrustes7669]

it goes higher and higher till these gains vanished by -50-70% and then you will wished you didnt invest in the first place and didnt wait for a fat lump sum.

[@steve6375]

@@bentp4891 5th August? Did you miss that?

[@whispie.]

Of course if you had 100.000£ invested by the time the market reaches its peak, and you can only contribute those same 200£ per month, the reality would look a bit different.. But I get your point and appreciate your videos. Keep it up!

[@StrangeGuy-jl7cl]

Was hoping this would be the sort of example he looked at as it’s much more realistic

[@ChrisShawUK]

The same point still holds - you haven't put 100K in at the peak. You put it in over many years previously so your average buy price is well below the peak price. When the market recovers, you'll have your 100K back plus the extra £19k or whatever the number was for the interim contributions

[@Andrii_92]

Asked chatgpt to do that kind of analysis with 50k, it concluded that you'd get your 50k back in ~3 years (even though it took ~6 years for the index to recover)

[@whispie.]

@@ChrisShawUK the point doesn't hold, which is that the relevance of your monthly contribution becomes negligent as your portfolio size increases

[@ewanpettman]

This is where some allocation to bonds/cash/gold comes in handy, so when equities crash you can rebalance to take advantage

[@dominic8218]

Yes put in and leave it!!

[@ClaudiaKuzounetsova]

I agree with terry, always stick to the plan 👍

[@dakzer55]

Great topic and most investing YT videos don't mention the longterm investing through the low-high times still yielding 30% plus profit. Thank you

[@turner1622]

Sure and Steadfast investing. Great example going through those years. Thank you

[@mohamadsayari2713]

Great video as always and interesting tips. What would the best strategy be if you have a lump sum and want to invest it today?

[@ericscott6864]

@@mohamadsayari2713 The 2 best times invest is 20 years ago and today. Have a 6 month of emergency savings and start investing and learning about investing

[@wallace-bv4rl]

I can believe the point about the power of averaging in during a down phase. I’ve averaged in this year in an up phase. With a newly opened (about February 2024) account. I was so happy with how things looked but then surprised as after a market pull back in the summer I was actually losing money!! I see this as the opposite situation as that you described at the start of the video. It’s not a big worry and the surprise is arithmetically I couldn’t see how it could have happened 😬😀

[@PhelipCaouette]

I like your way of explanation.

[@pickashole]

Anyone recall that goldman Sachs banker being interviewed by the BBC where he said "they can make a lot of money when the market crashes". The BBC interviewer was mortified but he was honest and said banks run the world.

[@GreedieKalin]

Thank you so much for your hard work! 😊 Need some advice: 🙏 I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). I don't know what they are. What should I do with them? 🤷‍♀️

[@sherifz2131]

Great insightful video. Thank you. However, for setting the right course of expectations, I wish you had mentioned about the caveat regarding the “dollar-cost-averaging-over-long-term strategy not working for individual stocks per se” way earlier in the video rather than towards the end. Nonetheless, I thank you for giving sage advice about the dollar cost average strategy for gains in index fund investments 🙏🏼

[@TobyNewbatt]

@@sherifz2131 yes for sure I can’t cover every detail all the time and this is such an important one. Lots of people apply DCA to individual stocks without thinking it’s a shame…way too many grifters on KZbin seem to follow this

[@JohnDoe-iv7yu]

What are the reasons for the market to go down? What are the reasons for the market to go up? 1. Inflation. Is it abating? Perhaps. 2. Is the data accurate, truthful? VERY debatable. 3. Is it an election year? Yes. 4. Ukraine war. 5. Israel war. 6. Consumer credit cards defaulting and also has reached 1.5 trillion in debt. 7. Bank failures. 8. Small business failures are massive. 9. Commercial real estate. 10. America WILL print money again... is this good or bad? There are more. So what are the positives versus the negatives? I see a false recovery in the near time with a savage downturn around 2026.

[@ChippingawayatOCD]

The bottom of the dip is where it’s at. Great content as always Toby, thank you 🙌

[@TobyNewbatt]

:)

[@deathfromabove123]

You’ve made it make sense! I thought my spreadsheet was wrong haha, one of my investments is up 10% ytd even though the price has stayed more or less the same!

[@valerienewbatt9678]

Great video, as always Toby

[@DavidSmith-bt6qe]

I got caught in the 2007 -2009 stock market crash and I was invested in lots of REITS and one Mutual Fund and it took until 2014 for my portfolio to recover. The only way I saw my way clear was that my stocks even though beaten down continued to pay the dividends and I still had income during the whole time. If I had sold my stocks after the crash I would have lost over 60% of my money. The next time I hope to be better informed.

[@josephblake8167]

Great content

[@Dux22]

Hi Toby, love your videos, so genuine and easy to understand. Thank you so much. This one grabbed my attention as I am at the point in investing a lump of my savings into SIPP or ISA. I am not sure if what you are saying here applies to a lump sum or just drip feed. Is it the same stats for people who invest their life savings all at once vs drip feed?

[@haleyasfraser2429]

Great video, Toby

[@TobyNewbatt]

Thanks 👍

[@nickpower-fj9bu]

I am close (within 3 yrs) to retirement with a decent portfolio. Plan to convert 60% to an annuity which will cover my lifespan costs. My fear is that the market will tank in the meantime and I will have to keep on working for a year or two as the pension savings repair themselves. Thinking of putting a bit into a geared bear market etf to cover some potential loss. Should I?

[@SaadonAksah]

Nice! Thanks for pointing that out , 👍

[@jeffocks793]

Good points and some nice graphics there. The only caveat I'd make is that while the pound cost average monthly buying is absolutely the best way eventually you run out of runway. I often think of those people aiming to cash out/retire during the crash. I wonder if they hung on for 6 years, would've been nerve-wracking!!

[@TobyNewbatt]

@@jeffocks793 definitely not easy! But at that point I’d be holding several years of cash if I was planning to retire. Gives you that runway in case the worse happens!

[@ChrisShawUK]

Doesn't matter if you retire during the crash because you're going to still hopefully live for decades. There's really no need to "cash out" any more - the days of being forced to buy annuities are in the rear view mirror. You only need to divest enough cash to see you through the next few years.

[@ciaranirvine]

There's absolutely no need to cash out of the market when you retire, that's old-fashioned advice from when most people often died before 70. You could be retired for 30+ years! What I plan on doing is gradually wind down the amount going into the market the last few years before retirement and put it increasingly into cash instead, retire with the huge accumulated pot of funds in the market and about 2-3 years worth of cash-in-hand. Then I don't care what the market does. Just divest enough each year from the portfolio to keep the cash buffer topped up. Then the bulk of your portfolio at retirement can still be growing away for the next couple of decades

[@jeffocks793]

@@ChrisShawUK yes, living for decades appeals!

[@jeffocks793]

@@ciaranirvine no I wouldn't cash out. But I recall all those people that had preprogrammed themselves to between 2007-2011 and did!

[@u10722u]

Hi Toby , great video again. I assume you swear by dollar cost averaging? I started investing within an ISA in July with a windfall and I lumped my full allocation in only to see my (Spxp and fwrg) stock dip almost immediately. It’s been very frustrating not being able to buy into this dip. A lesson learnt and I will definitely consider CDA come next April when I can add to my portfolio

[@steve6375]

@@u10722u if the market was down then go all in, but in July it was at a peak, so put most in CSH2 at 5pc and DCA 1k a month into ETFs. If market dips then double/triple dca contribution. Now all you can do is wait, you will feel better next year and you will probably find that you would have been worse off DCA ing. A few months is nothing in this game, we need to talk in years, but a 20pc gain in a year will make you feel better!

[@pipebliss]

Dollar cost average is amazing if you buy an investment that will grow and compound over time.

[@Incognito-Patts]

Just retired so happy to be sat in cash at the moment getting 5% (MMF) waiting for the crash!! If the market hasn't dropped by the time interest rates hit 4% I'll feed back into equity.

[@ChrisShawUK]

The market's returned way more than 5% over the last year. You can lose an awful lot of money waiting for a crash. If interest rates drop, that will push up equity prices even higher

[@benji9930]

​@@ChrisShawUKnot really because if interests drop it many signal a slowing down and potential ressession.

[@ChrisShawUK]

@@benji9930 so what? I've invested for the last 25 years through many recessions. If you want to accumulate wealth over the long term, you have to stay invested I'm afraid. I see many, many excuses in KZbin comments for why you should be out of market because this or that might happen. Honestly, it's very simple. If you want to be financially independent, then you need to consistently invest in index funds over 20-25 years. It will work. You won't become financially independent by thinking up excuses not to invest.

[@steve6375]

@@Incognito-Patts small caps and finance should do well now, so why not invest some in that and maybe some dividend ETFs. Esp if you have some tax allowances on gains and dividends to use up each year?

[@adz_6249]

Any advice on whether it’s worth investing in overlapping funds like S&P500 and a Global fund despite Apple Microsoft etc taking up large percentages of both. Most global funds are still heavily US so is it just worth choosing one or the other. I’m too unsure on future performance to just choose the S&P500.

[@johnristheanswer]

Just find a WORLD EX US fund. Easy really.

[@steve6375]

@@adz_6249 make a global ETF your core fund, then have satellite ETFs like tech, finance, energy or whatever as well as some reserve in cash or money market etf like CSH2 so you can buy in when corrections occur.

[@versaceviper9798]

VWRL and chill

[@paulturner4419]

But different if you’re retired or approaching retirement

[@davidlong8217]

there's seems to be the assumption among KZbinrs that a crash is imminent. In this example of yours, one would get dividends during this time but zer0 growth.

[@ChrisShawUK]

If you re-invest dividends, then you do get growth. The dividends purchase index at lower values. When it returns to the previous peak again, reinvested dividends will be showing a growth compared to the original payout. Plus additional contributions you make during the dip will also record growth when the index returns. So overall, it's not zero growth peak to peak. Cash received and cash invested will have a nice growth bounce.

[@minimad8793]

slacking me, number 57 in the thumbs up. wow just realised I am on 80 payments of investing

[@danbucsa4599]

Ahh, I just received the email to join your community and there's the catch, £60 per year just to join the Discord. Shame that the community you want to build can only be this great community, if they pay. Hard pass. 🙂 I'll stick with watching your videos and I have subscribed...

[@johnristheanswer]

It keeps out the pains in the arse. A small price to pay.

[@TobyNewbatt]

No problem Dan, I appreciate the support. I wont be stopping making videos anytime soon :)

[@j.b607]

Major economic events like the Great Depression, oil crises, and financial collapses have often led to prolonged stagnant periods 1929-1954, 1966-1982, 2000-2013 and this is nominal (not accounting for inflation) The next global problem could be the decline of the dollar.. Research the September BRICS summit.

[@activeflip0805]

When do you think its gonna crash

[@dominicbrennan2536]

Do u recommend putting a lumpy sum in first then paying a monthly amount in to follow the initial sum

[@TobyNewbatt]

So the stats say that, in the long run, lump sum is best (DCA every month is also lump sum if that is all the money you have). Short answer is you just need to do what works for you and will cause you the least stress. If you are worried about lump sum...don't do it. Plus, anything can happen in the short term

[@davidr7819]

I’ve done exactly this, just experimenting really

[@theblackphantomhd]

I dont have any money 5o invest right now since i unvest paycheck to paycheck, but if a crash does come, i will just pull from whatever savings accounts i have.

[@lemmybongo8611]

Just wondering about auto-investing over the long term. If one is going to invest, say, £500 a month would it be better to break that into two payments of £250, or five payments of £100? Possibly improving your chances of catching different prices for DCA'ing rather than a single lump sum on whatever that price is on one day? Am I overthinking!? :)

[@TobyNewbatt]

It's an interesting question and the true answer is that you will never know - all we know from the past is that it is better to lump sum money in as the market mostly moves up - so saving money on the side is timing the market and not doing anything for you. Also - although there are a lot of low-cost platforms - investing does cost you money and if you are using a pricey platform then this is also going to cost you fees every time you buy. For me - I'd just stick to one plan and invest. There are far more things to worry about, like focussing on getting as much in!

[@Little_Eddy]

Andy Farrell a.k.a Andrew Duncan is probably creaming his MENSA pants over this. Jimmy Savile was also a member of MENSA, nuff said, as it happens. I'm sure there is no correlation.

[@johnmajor5525]

So dollar cost averaging now in say S&P woukd likely outperform wahcking a 20k inheritance in ?

[@TobyNewbatt]

There is no way to know the answer here I'm afraid :) When I use the term DCA, I am technically lump summing money every month. Keeping money on the sides and trying to time the market has historically given you lower returns BUT it is all up to you and how you will feel. Most of the time the market will move up in the long run.

[@robsyuk]

Qbts is about to double

[@BillCarrIpswich]

This is why i dont think there'll be one for a while. Everyone is full of cash waiting to buy

[@batemanlife]

Usual quality video 👍🏻

[@fireonion7092]

Really like that screen on the wall behind you, displaying stock prices? anyone know what it is as I quite fancy getting one?

[@TobyNewbatt]

@@fireonion7092 I keep a link in the description as so many people ask what it is 😇

[@fireonion7092]

@@TobyNewbatt Brilliant! thanks very much :)

[@carllewis7964]

Toby says keep investing what is the difference if person A has £1000 to make a one off investment or making 10 monthly investments at £100 pm what is the benefit?

[@steve6375]

@@carllewis7964 because if you put it all in when market is at peak, the next 6 months will show a loss, whereas if you fed it in each month, you would not lose as much in those 6 months and by the last few months you will be buying at the bottom, meanwhile cash will earn 5pc interest

[@danspencer6840]

Hey Toby, what about the years of dividends that you’re making as well? Even if the stock market stayed perfectly flat you’d come away with profit would’t you?

[@TobyNewbatt]

A dividend is just one part of your total return :) - any time a dividend gets paid it reduces the value of your stock by the same amount. HOWEVER, they are still important when it comes to reinvestment. I wouldn't consider them profit though :)

[@danspencer6840]

@@TobyNewbatt thank you, that makes sense ❤️

[@eddiewilliamsmentalist]

Thanks Toby, always reassuring to hear

[@CycleXplorer]

The old classic, time in the market not timing the market

[@TobyNewbatt]

It can never be said enough!

[@DarkoFitCoach]

Revert to the mean: When index is high its bound to go lower When index is low its bound to go higher This makes up the average/mean thus 2 above points are always true

[@Abdul_Rahman86]

I have no choice but to dollar cost average every month. Unless I come across a large sum of money 😂

[@JasperH00]

Hi, do you have the name or link of the stock live board in the back?😁

[@TobyNewbatt]

Check my description :)

[@stellanews6190]

It s extremely difficult to keep on investing in such a massive downturn. Even if I wanted, my emotions won't let me. I will most likely withdraw the majority and start reinvesting when I see signs of growth

[@ericscott6864]

@@stellanews6190 if you can get through that first down turn OMG!!! You will feel like you want another crash just to make that kind of money again and again

[@ChrisShawUK]

gulp. That's a brave move. Most people who sell at a loss are so badly scarred by the experience they never re-enter the market again.

[@stellanews6190]

​@@ChrisShawUKthat may happen to me too. You never know... 😢

[@ChrisShawUK]

@@stellanews6190 I suppose that's why you hear the the stock market is just a mechanism for transferring wealth from the impatient to the patient.

[@scobeyrowley5115]

I saw this at 19 seconds!

[@TobyNewbatt]

@@scobeyrowley5115 winner! 🥇

[@ChrisShawUK]

47 seconds

[@llamudos9809]

DCA!!!!!!!!!!!

[@Black-Circle]

I don’t think we will see a crash like 2007/8 again

[@Zeus_1983]

Is there a measureable definition of a crash?

[@ChrisShawUK]

Once you've measured it, it's too late. Of three I've experienced, COVID was the worst because I had the most accumulated. The total portfolio valuation dropped by 32%.

[@johnristheanswer]

A correction is 20% , a crash 30% from the high as far as I'm aware. Could be wrong.

[@coderider3022]

@@johnristheanswerabout right just the expectation of those events. 5 -10 years.

[@Black-Circle]

People worried about a crash yet ignore the fact that inflation is destroying their wealth if they leave their money in a bank account

[@TobyNewbatt]

100% - Inflation is the biggest enemy of your money

[@AndrewHaleyUK]

Tibbs 😂 Quite right, stick to the plan 👍

[@TobyNewbatt]

Always!

[@salguodrolyat2594]

Read seth klarmans margin of safety.😁

[@LongRonnybyebye]

Nio

[@lewisscott22]

As sad as it sounds, I hope we do see a crash or something like this again. Because the wealth you will eventually generate during this crash will be amazing! ABB: ALWAYS BE BUYING!

[@TobyNewbatt]

I’ll be right there with you 😎

[@PaulB-q3d]

"How to Invest In The Next Stock Market Crash" - With a bucket, not a thimble!

[@TobyNewbatt]

I’ll be taking a digger 😂

[@procrustes7669]

I rather lump sup at the button of the barrel.

[@TobyNewbatt]

@@procrustes7669 when will the bottom be?

[@juliantucker354]

I always get my investing advice from Terry Tibbs

[@TobyNewbatt]

He’s a legend and forever lives rent free in my head

[@victoriab8186]

It’s rather important to note that it’s not necessarily just about being strong willed and bravely keeping going - it’s also about having the resources to do so. If I had started out investing 200 a month, but due to the crash I got laid off, not much I can do - I don’t have the money to continue investing 200 a month. A crash like 2008 also changes the timescales on which people might expect to be getting returns. If you were investing hoping to get a house in 5-10 years, and you’d been going for a bit before the crash, you might have to push that hope out years in order to get the returns when the stock market recovers - at which point, the house price inflation would be screwing you over

[@TobyNewbatt]

Sure there’s not much you can do if you can’t afford to invest? Nobody knows the future right I’m a bit confused as to the point you wanted to make. Nothing is guaranteed I’ve never said it was if you have ever watched my videos before 😎

[@Srvermelhim]

the secret as u said allways invest and invest money u dont need, theirs a moment that u win

[@SirDPB86]

10ft paddling pool! Talk to me!!

[@TobyNewbatt]

hahahahaha

[@ploppy193]

I wonder how many S&P500 companies have beaten the S&P?

[@TobyNewbatt]

I always like running the numbers, I did some towards the end of this video :) Also - it can be quite hard as the companies in the S&P 500 are always changing over the long run. But still - it's about 200 companies of the 500 over the last 10 years in the S&P 500 itself.

[@ploppy193]

@@TobyNewbatt many thanks for reply 💕

[@timlodge8267]

I love stick market crashes.❤

[@NewsFlashJustIn]

I did not expect to see Terry Tibbs

[@CliffRed7]

Distracted by terry tibbs haha talk to me

[@willij5149]

Who wants to experience their portfolio drop by 50% after years and years of hard work, NO ONE! Stop sugar coating all this guff, it's horrible and there is no guarantee the market will recover within any timeframe, past performance should not be a guide for future performance. What if you are ten years from retirement and it takes 20 years to recover to break even? You're screwed. A mix of T bills and broad equity exposure for me, reduces volatility and helps one sleep at night, sure peak gains will be reduced, however I will fair much better in any crash and could possibly add to my equity position within the crash. This current 15 year bull run has been built on ultra low interest rates and an accommodating Fed, things might be very different in the future and one should be, in my opinion, be alot more diversified that an index tracker.

[@TobyNewbatt]

@@willij5149 I’m not sure what the point you were trying to make is here? Nobody knows the future. Holding cash that you could be investing is trying to time the market. If you are looking to retire then you still need to invest, so you’ll hold more cash or short term savings equivalents. Not sure how that changes what might happen in any stock market? In your point about taking 20 years to recover or break even what are you suggesting? Trying to time the market?

[@willij5149]

@@TobyNewbatt if you are happy with seeing your hard earned money drop by 50% in a serious crash, then go right ahead and blindly keep investing. I think it's important to get across that there isn't a one size fits all approach here, for example it you have £500k in 100% equities, a major crash kills your portfolio, but if you had a smaller amount because you have only just started investing, then a crash presents an opportunity in many regards only if the market recovers like you are saying. I'm all for regular investing and not sitting out of the market trying to time it, however going 100% equities inside an index tracker while the market is expensive with the labor market slowing, is definitely not something I wish to be doing with my hard earned money. Like I said, I'm happy to lose out on some potential gains (going by past performance) in return for taking less risk and sleeping soundly at night. Have you even ever experienced a major crash?

[@TobyNewbatt]

@@willij5149 I understand what you are saying but none of us know the future and trying to time the market is a fools game. There will always be risk and this is part of it. If you can’t stand to see a 50% drop then don’t invest that’s fine 😎. Leaving money in bonds and cash also loses value with inflation. Something I talk about a lot on my channel.

[@willij5149]

@@TobyNewbatt I don't think I have said I'm trying to time the market? Also let me point you towards the Nikkei? How long has that taken to recover to break even? I just don't think we can assume markets will always go up and recover from crashes within an acceptable timeframe. Yes you are right about risk, but we all have our own tolerances to risk and I personally like to lower mine. I watch most of your videos and find them excellent by the way.

[@ThrowBackZone]

This strategy sounds great, but I still can't shake the feeling of panic when the market drops! 😱

[@TobyNewbatt]

@@ThrowBackZone it’s totally normal to feel that way! Just got to hold on to the rollercoaster 😅😜

[@MarkDaw]

Talk to me

[@TobyNewbatt]

Luxury car, sports car, family car

[@danydany3974]

When will market crash?

[@TobyNewbatt]

when you least expect it :P

[@danydany3974]

Now.

[@TobyNewbatt]

@@danydany3974 I’ll be waiting mystic meg 😜

[@UKGeezer]

It's going to be on a Friday...the 13th.

[@danydany3974]

Can you come up with company that can grow 1000 times.