STOCK MARKET CRASH – BE PREPARED IN 4 STEPS

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A stock market crash is always around the corner. In the last 18 years we have seen two crashes of 50% and if you live in the Netherlands you still dream of those 2000 highs. Nevertheless, a 9 year bull market quickly erases all the painful memories but forgetting what happened and how it looked might be very dangerous. If you haven’t lived through a stock market crash, you should then at least try and think about it in order to be prepared as much as you can.

We analyze the 2008 and 2009 stock market crash and describe 4 steps how you can be prepared!

Comments

Greg Flook says:

Thanks for the video. I'll be ready for the Black Friday of the stock market 😀 👍(I guess the only thing I haven't done yet is put my strategy in writing!)

Joyce Koch says:

The most common mistake is not understanding the nature of bear markets. Most corrections take about 5 months to occur. A general rule is to ignore so called dips to buy unless they are over 20% in depth and even then you should creep in slowly. If the market collapses over 40% you should be all in. In todays market the risk to gain ratio is toward risk which means one should be holding a lot of cash but no more than 50% stocks and bonds. The one certain thing is wall street is a random walk-just consider how many people you have heard over the last 8 years predicting a deeper crash-did you know almost a third of all the gains for the entire history of the Nasdaq have occurred over this time? One can lose money being too conservative just as easily as someone who take too many risks-moderation has been proven time and time again most likely to get you where you want to be.

anythingss says:

It would be great if you cover the best approach to go with at the moment. Someone with some cash NOW, invest it or wait? or maybe the portfolio should be very minimally involved in stocks now?

Also, another great content to cover Dr.Sven is: what happened to those who stuck with the stock market downturn and did not sell anything? and for stocks that were supposed to pay dividends, what happened to those?

Matt McCracken says:

I got out of stocks in 2007 based upon the advice of a friend who worked on Wall Street. After the 2008 crash I started reading to figure out what happened. 2008 – 2009 was one of those downturns caused by excessive debt in overly risky investments, such as subprime mortgages. It happens every 50 to 70 years. I have stayed out of the stock market since 2007, to my regret, keeping my money in treasuries. This was a huge mistake, but I never trusted this stock market. In my humble opinion the bull market has been caused primarily by the zero interest rate policies and quantitative easing of the Federal Reserve. In other words, this is a Fed induced bubble, and once interest rates return to normal, this bubble will burst. I supported the Fed's policies until about 2012, but it should have raised rates at that point. We would have had another recession, which would have been painful, but the pain this crash will cause will be exponential. We needed to de-leverage, i.e., reduce debt, following 2008 – 2009, but instead we have re-leveraged. When will the Fed learn?

Tibor Zavecz says:

First round would be 60% by me. Wait till 70% and will see.

Lorand Bokor says:

What is going to be the impact on the forex market?

Thirty-Ott-Six says:

Would Real Estate prices go down agian during the next crash for small homes? & why or why not?

OndaTomten says:

Hi Sven, would appreciate it if you would do an in-depth video on options.
Thanks

Tibor Zavecz says:

Sven, do you think that Central Banks will interfere with additional QE's as they did it in 2008? Will it push this time stock prices higher or it wont be affective anymore. Any correlation we can make with Japan in terms of stocks and housing prices never recovered? Can you make a video about it? Possible scenario/s.
Thank you 💪

RIchard B says:

Wise words…my best advice, write down a bullet point strategy and stick to it. When things are hitting the fan you will look at one stock that has lost 60% and this will be your focus, desperately hoping to recover some losses, it will influence everything . You will forget that perhaps this one stock represents just a small part of a balanced portfolio. Stick to the plan and remember if you can’t afford to lose that money then invest in something safe in the first place and be patient. The maths will always win in the long run.

Ctonew says:

This is the best financial show on the internet or cable far better than watching hours of cnbc.

Jimo225 says:

how do you know we are not in the late 1950's where the stock market was way up and only had a small 20 percent or so correction then went higher until the 70's. If everyone thinks the market is going to crash and they are not buying isn't that in itself an indicator that stocks are not overvalued

JD says:

Excellent video. Again. Excellent warning. And excellent advise. Love your videos! But you know that already 🙂
Personally I'm hedged with some (gold) miners and silver bullion. However my position in FLOW TRADERS as a "volatility hedge" has blown up to roughly 50% of my stock portfolio. April 24 Q1 numbers… 🙂
Kind regards from Amsterdam again

Daniel Cobb says:

God bless Ray Dalio and the All Weather portfolio!
Great advice on writing down the investment procedure before investing.
Thanks again!

Tomix Kin says:

Sven, you do really good job here. Just saying, in case you didn't know 🙂

UniProcket says:

Maybe the crash will be much less then 50% because everybody expects it. I think there is too much money on the side line. Therefore I expect no extreme crash.

Aschraffff says:

Waiting for 2 or 3 years in full cash is a little bit painful. Any stock suggestions (USA/EU/Japan)?
I'm looking into Samsung Electronics but I think I missed the cheap valuation (It's still at a PE of 9 and PB of 2….)

David says:

Sven, I love you, man. But, I am not so sure the big one is here yet. CBs would continue to manipulate markets to avoid a crash, too. What if you're wrong?

Flameball says:

Sven, do you have sectors and companies in mind that you want to buy when we are deep into a recession? Or will you just look at what is cheap when the time comes?

Nunya Biz says:

BTFD!📉📉🔥🔥🔥💩💩💩😎

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