If there’s another stock market crash, like the one we saw back in March, I know most investors like me will want to be in a position to capitalise. The best time to buy shares is when markets are down. It’s not as easy in practice, however.
Usually crashes aren’t easy to predict (otherwise everyone would make money from the stock market) and there’s an opportunity cost in keeping too much cash parked on the sidelines for too long. Cash loses value over time because of inflation.
Here’s what I’d do to make the most of any future market crash.
Review holdings frequently
One of the things that should be an ongoing process for most serious investors is reviewing investments. This is all the more needed when markets are looking expensive or a bull run has been rampaging for some time. High price-to-earnings ratios, people not usually interested in … Read more