Will The Stock Market Crash

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Will The Stock Market Crash

Will The Stock Market Crash This Year?

A poll from Ipsos revealed that 38% of the participants think the stock market will crash in 2026. Around 39% of people think the markets are unlikely to crash.

MUFG commented that the US stock market has crashed 27 times. Every time a market declines by more than 20%, it is called a crash. If we look at the history of the market starting from the 1920s, there's a 25% chance the market could crash in any given year.

Last US Market Crash Was In 2022

The last US market crash was in 2022. So, there's a chance that another one is just around the corner. And we all know that any crash in the US markets also leads to a worldwide stock market crash.

But one positive thing is that markets always recover after a crash. But the recovery can take time, and there's no way around that.

A market crash also means a great opportunity to buy good stocks at a bargain. So, a good strategy at times like these is to hold cash!

One particular company that's viewed as evidence of an overheating market is Nvidia. But the future earnings estimates of Nvidia reveal its forward P/E is very reasonable. So, while there may be overvalued AI stocks out there, Nvidia is not one of them.

Even in the event of a market crash, big companies like Nvidia will easily come through it unscathed. That's why the best strategy to survive a market crash is to invest in big companies.

Another piece of advice is to hold onto some cash. So, when the markets do crash, you would have the money to buy great companies at a discount. As they say, it pays to be courageous when the entire market is fearful.

Also, people who invest for the long-term don't have to worry about market crashes. After all, the long-term trend of the US markets is still positive if we ignore the short-term noise.

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