This guide will cover all the right and wrong moves for when the stock market crashes and give you the confidence to execute the best investment strategy possible.
A market crash is when stock prices rapidly decline across a broad market or sector. A market crash is usually caused by new data or information suggesting the economy is distressed.
Although stock market crashes are often frightening for investors, they provide great opportunities to buy quality companies at deep discounts. When grass-fed ribeye steaks and fresh Alaskan king salmon go on sale at my supermarket, I buy extras and throw some in the freezer.
The goal for long-term investors is to buy high-quality companies that will weather the storm. Do not double down on companies that are speculative or have never been profitable.