7 Reasons the Stock Market May Crash Again and 3 Things to Do About It

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7 Reasons the Stock Market May Crash Again and 3 Things to Do About It

What a year it's been for Wall Street and investors. The unprecedented coronavirus disease 2019 (COVID-19) pandemic initially clobbered the broad-based S&P 500 (SNPINDEX: ^GSPC) and sent it lower by 34% in under five weeks. If there's been one constant in 2020 aside from volatility, it's that predicting the short-term movements of the stock market with any accuracy simply can't be done.

https://finance.yahoo.com/m/b885270...b8b/7-reasons-the-stock-market.html?.tsrc=rss
 
I'm planning for at least another crash in my lifetime. I'm also planning on at least 2-3 more bear markets.

Bull markets have followed every single bear market in history.

Have dry powder at the ready

Secondly, you'll want to have cash at the ready to deploy during a stock market crash or correction. Keep in mind that there have been 38 corrections of at least 10% in the S&P 500 over the past 70 years, and every single one of these significant moves lower has eventually been erased by a bull market rally. As long as your intention is to stay invested for the long haul, having cash at the ready during a stock market crash is a beautiful thing.
 
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