Stocks have been largely overvalued for months, and many believe that conditions are ripe for a near-term stock market crash.
But it’s important to be ready for one at all times, and that includes knowing what not to do if things take a turn for the worse.
Many people assume that when stocks tank, the best idea is to just sit back and watch from the sidelines.
In fact, it’s actually a good idea to stockpile some cash ahead of a market crash so you have an opportunity to buy stocks as their value drops.
Just as you may be inclined to avoid buying stocks when the market declines, so too may the idea of pausing your retirement plan contributions enter your mind.
Many investors spin their wheels during market crashes by trying to figure out when stocks will truly hit their low point.
Rather than attempt to time the market when stocks are down, keep a watchlist of companies you’re hoping to invest in, and jump when their stocks go on sale.
Will the stock market crumble in May? It could, or maybe it won’t.