How To Survive Market Crash

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How To Survive Market Crash

Avoid This Mistake To Survive Next Market Crash

The S&P 500 index is rising with no end in sight, but we all know it will eventually end. There is a very real possibility that the S&P 500 will eventually crash.

And when the S&P 500 crashes, it will also take a lot of investors with it. But by avoiding just one mistake, you can easily survive the next S&P 500 crash.

Do Not Panic Sell During A Market Crash

So, what's the golden rule? Do not panic! Yes, that may look simple, but history has shown us that it is panic and not the crashes that wipe out the portfolios.

In the short term, the markets look very erratic and volatile. This makes it tough to predict what's the next move, and even the experts can't tell anything with certainty.

If we look back, everyone said that tariffs would lead to very high inflation and a new recession in the USA. This caused a lot of investors to panic and sell their stock holdings.

The S&P 500 also crashed and declined by double digits in a span of a few days. But after that, the index not only recovered but also reached new highs.

This is a recent example, and it shows that the best thing to do is not to do anything. The worst thing you can do for your financial health is to panic sell during a crash.

After all, it only took one month for the S&P 500 to recover from its low levels and to eventually make new highs. So, anyone who ended up selling at the bottom exited the market and missed out on an upside of almost 33%.

So when the S&P 500 crashes the next time, here's what you should do... Be calm and do not panic sell! At the start, you are likely to see painful losses as the market's reaction will be very extreme.

But over a long duration of time, you are highly likely not only to recover from the loss but to also capture some of the upside.

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