So what would if the stock market crashes and what should you do during a crash. And right now my normal portfolio is up around 18% and it’s very high and it’s not supposed to be that high and I’ll explain later. ????M1 FINANCE FREE $10???? https://m1.finance/4BZo2Na7uq_N

1. I Cannot Predict a Stock Market Crash
– Although there are signs of a crash
– You can usually only see it after it happened

One thing you and I can do:
– Is take action during a crash
– And that’s why when the stock market crashed back in marched
– I instantly took around 20k and invested it ( because I knew it was time to buy in bulk)

And by the end of this video, you will know why also.

2. Before the Crash
– You should be doing two things
– Investing and savings up a reserve
– And I’ll explain why

The Average Person:
– Wants to invest a lot of money when the market is going up, its normal to want to make more money ( but that also means they might be buying at peak prices )
– When the market comes down crashing the average person ( start to panic, stops invest and some even sell at a lost)
– You want to be the opposite, you want to invest more when the market crashes

Here is How:
– My strategy is dollar-cost investing, so once a week I invest X amount of money, and I do that on the same day whether the market is up or down ( I actually set on auto)
– And by doing this over a long period of time, I’m guaranteeing that I will be buying at the average market prices and not the peaks and not just the lows.
– While I’m investing this way, I’m also building up a stockpile of cash around 10% of the money I get paid ( this means every year it builds up more and more) – and when the time comes to invest, I will have the money to take advantage

For example:
– When the stock market crash in March, I was investing at the time around $125 per week
– When I saw my portfolio dip to -10%, I knew it was time to invest
– I grabbed 20k and divided it into two weeks, 10k and 10k. I invested that when my portfolio went as low as 13—15%.
– And when the market recovered in a month and a half, I got to profit from all of that, and now I’m up around 18%

Tip: The idea is, to break down the big amount also, so in case it drops more, you can buy more at a lower price
Warning: you have to willing to patients until the market return, average 3-4 months for market corrections, but sometimes it can go as long as 25 years. ( so make sure you won’t miss the money you invested and can let it grow)

3. Now if you don’t have extra money
– Here is a strategy with rebalancing

The idea is:
– I invest with Acorns 80% stock ETFs and 20% bonds that are the ratio I like
– Now it means during the good stock market year, my stock ETFs will outperform my bonds and during the bad year my bonds will outperform my stocks
– So by rebalancing my portfolio back to 80-20 once every 12-18, im guaranteeing I’m going to be buying low and selling high

Btw:
– This is done automatically with Acorns and also m1 finance
– So you don’t even have to worry.

4. Overall
– During a market downturn, you want to have extra money to invest at a discount
– But you also want to continue investing and not wait until some magical moment by not even last as long as it takes to your money from one account to another account
– So keep invest, and save some money on the side, for when the time comes.

Ps. You can apply this to real estate investments also

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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