This week saw one of the biggest corrections in Wall Street history. And many investors believe that’s a sign that the stock market is collapsing.
Today’s article is based around one simple question: What if the doomsayers are right?
In the event this happens, how can you protect yourself? And is it possible to profit off a recession or depression?
Let’s take a look.
Buy Low, Sell High
This is the world’s oldest investment advice. And it’s a tactic that’s made many families unfathomably rich.
However, “buying the dip” isn’t as easy as it sounds.
I tried doing this with BitCoin, but eventually chickened out when it looked like crypto currencies were completely dead. Many investors will do the same with stocks.
Buying during a low point or when “all is lost” takes courage. And you need some practice to do it.
My best advice? Start investing today (even if it’s just a little money) to build up courage in these volatile markets. A couple hundred bucks in a Vanguard index fund is a great (and inexpensive) starting point.
It’s going to be the best education you’ll ever have.
Best of all, if you’re working on a limited budget, the Robinhood App lets you invest with no commission fees. And you’ll even get a free stock just for signing up through this referral link.
Look To Gold And Crypto (They Go Up During A Stock Market Collapse)
BitCoin and precious metals seem to inverse stocks. When one goes down, the other goes up. This was the case with gold back in 2008. And it happened with crypto during this week’s big correction.
While BitCoin and gold have gone up in value recently, I don’t think they’re anywhere near the top.
If the economy goes south, both will continue to skyrocket.
Because of this, I think there’s still plenty of time to invest.
That said, I would suggest owning physical gold or storable BitCoin. Doing so is a little safer than keeping your assets on some exchange during a panic. You want both assets somewhere you can access them, not floating around in a broker’s ledger.
Because of this, I suggest ordering physical gold from Gold Eagle Coins. They’re a trusted dealer and carry everything from coins to solid gold bars.
When it comes to BitCoin, use Coinbase (you’ll get $10 in free crypto through this referral link). They’re the biggest, most popular digital currency exchange in the world, and I can’t recommend them enough.
Build A Cash Reserve While There’s Still Time
Lastly, a crash or depression allows you to buy wonderful assets at incredible prices. Remember that when you invest in the stock market, you’re investing in businesses.
And many companies are built to weather an economic storm.
Because of this, it’s smart to create a shopping list of businesses, ETFs, and funds you want to own. Then, when the market tanks, you can gobble up these assets at a massive discount.
Of course, you need cash to do this. And my suggestion is to open a CIT high interest savings account.
This is a great place to park your money. And you’ll earn a meaty 2.45% annual interest. That’s better than most bonds, and without any risk. Start saving now, and you’ll be well prepared for a stock market collapse.
