I’m sure a lot of you have already heard about the Stock Market Crash 2016 prediction but it’s still a prediction, it could or could not happen in 2016 or it could happen now, 2015. I don’t mean to scare you but I just want you guys to be always prepared for it because the only certain thing about the stock market is it goes up and down.
Like what happened recently with China’s stock market, sparked by the devaluation of Yuan. Stocks stumbled, indices fell down. China is the second biggest economy in the world so the correction of its exchange rate in the market affects many businesses and other markets. It’s like a domino effect, everything that links to it is affected. Even iphones designed in the US are assembled in China. Eventually, things would recover.
China is not the only big player, there are still some like the US. If the stock market crash happened in 2016 are you prepared? What will you do when the next big economic crisis happened?
What to Do When the Stock Market Crashed?
As a passive investor, here are the things you should do:
Do not panic. Yes, the first thing you shouldn’t do is panic because you could likely make wrong decisions. Just because you are seeing huge loss on your portfolio doesn’t mean it will stay that way. Do not go crazy by selling now.
Remember it’s only around 20% to 30% of your money is invested in the stock market. Do not act like you are losing it all. Like I always say, do not invest all of your money in the stock market. It is very risky even though it is rewarding.
Take a break. Forget about the bad news. Things will eventually recover. Even the CEO of the bluechip company you are investing with could be in the Bahamas taking a break.
Buy some quality stocks and continue sticking to your PCA (Peso-Cost-Averaging) and investment strategy. When the market crashes, some people take that opportunity to buy more of their premium stocks as they know stocks would soar like a rocketship again after a year or so.
Have other money-making wheels like your business, real estates, gold, and online ventures. Stocks must be just a slice of the pie.
Again, the only certain thing about the stock market is it goes up and down. If it’s down now, it will eventually come back up sooner or later. Spend more of your quality time with your loved ones. That is what life should be after all.
Cheer up! Brighter days are coming. By the way, our monthly reports for Magic 10 will now be posted every quarter so I can have more time to post more investment reviews and articles here.
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