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I’m not going to bury the lede. Another stock market crash is going to happen.
I know this not because stocks are overvalued (although they probably are) or because COVID cases have continued spiking, or because the federal government seems unlikely to compromise on more financial relief, or for one of almost a dozen other reasons.
I know it because stock market crashes always come. In fact, just in my lifetime alone, I’ve lived through:
The crash of 1987, when the S&P 500 lost more than 30% of its value in just under 40 days
The bursting of the DotCom bubble, when the S&P fell more than 44.7% over two years in the early 2000s
The 2008 financial crisis, when the market shed over 50% of its value in under a year and a half
The coronavirus crash
And I’m only in my late 30s.
But despite the fact I’m 100% confident the market is going to crash again, I’m not worried about my investments or planning to reduce the amount I’m putting into the market. And, if you’ve done the right things, you shouldn’t be either. Here’s why.
Image source: Getty Images.
You can’t predict a market crash, but you can be ready for one
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