Though stock values have dropped at several points in the course of the past year, for the most part, 2021 has been a solid one for investors.
Furthermore, stock values have been high for a long time now, and while the market definitely took a tumble in March of 2020 when the pandemic first hit home, it recovered fairly quickly.
Either way, though, I think it’s important to always be prepared for a stock market crash — even if you’re not lying awake at night worried that the next one will strike any day.
It’s always a good idea to have a solid emergency fund — enough money in the bank to cover three to six months of essential living expenses.
And so between now and the end of the year, any money I don’t spend on holiday expenses or other obligations will probably go into my savings so it’s there for me just in case.
When you own stocks , their value can rise and fall, leading to a scenario where you may be more heavily invested in a single market segment than you’d like to be.
And so I’m researching some companies now so that I’ll be prepared to buy shares should the opportunity present itself.
Sitting around worrying about a stock market crash is not a good use of your mental energy.
By boosting my cash reserves, balancing my portfolio, and strategizing about future investments, I’m empowering myself to deal with whatever stock market turbulence comes to be in the coming year.