Do This When The Stock Market Crashes Even More

In this video, I’m going to show you what to do when the stock market crashes, even more, to help prevent you from doing really dumb things with your money invested in the stock market when things get really really bad.
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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.
1. There Are No Free Rides
To make money investing, you’re going to have to accept some level of risk. This means that when you put money into the stock market, it has the potential to lose value…, especially in the short term. What you invest in, and your portfolio allocation will determine the level of risk you’re taking on as well. If you put 100% of your money into 1 stock then your risk level is extremely high. If that bet paid off then you’d be handsomely rewarded with outsized returns.
2. When In Doubt Zoom Out
Adjusting your time frame is an easy way to prevent yourself from losing money by selling when your stocks are down. Keep in mind that losing money on paper is completely different from actually losing money when you sell while the market is down. I know it feels real because you’re seeing a loss of 10’s of thousands of dollars, but it’s basically just monopoly money until you sell. When the market is tanking, the motto I find helpful is “when in doubt, zoom out”. For the boomer passive index fund investors out there like me, we can look at something like the S&P 500 and take note of what is happening in the short term AND in the long term.
3. Don’t do something, just stand there
But to truly benefit from the rise in the stock market over time, you need to be able to hang on really really tight even when things get very very ugly out there. The rule of “don’t just do something, stand there”, even applies to when times are good and you see people around you making money off very speculative investments.
4. The Stock Market Goes Down Even When It Goes Up
Over the 40 year period of 1980 to 2020, the S&P 500 saw a double-digit Intra year drop 21 of those years. To put it simply- the stock market seeing a negative return at least once, most likely multiple times per year is completely normal.
5. If In Accumulation Phase This Is Great News
The stock market crashing is one of the best-case scenarios for anyone in the accumulation phase of investing, but terrifying for anyone just about to retire. When the market is tanking, everything is on sale and it’s a quick way to scoop up some of those stocks or index funds you like for a lower price.
6. Review If Your Current Investing Plan Makes Sense
If you’re ever freaking out about seeing your investments tank then it might be time to review HOW you’re investing your money. Great investing has less to do with your actions when the market is going up, and more to do with how you react when the market is going down.