The Dow Jones sunk 1,175 points last month, marking the worst day ever in the stock market.
Is a crash coming? If so, it might not be a bad thing.
Keep in mind everything in this post is purely our opinion and not financial advice, always do your own research before investing.
First off, no one can predict a stock market crash. But we do know the market runs in patterns and it has been up trending for so long that it’s only natural that a recession happens within the next couple years.
Would a recession or crash be such a bad thing?
As an investor, no one wants the market to crash for obvious reasons but there is some good that can come out of it.
Let’s take an alternative perspective on it.
How does someone make so much money when the rest of the country is panicking with all their money?
The smart investor knows that this is the best time to buy. Recessions provide buying opportunities in stocks that are otherwise too high priced to buy.
As Warren Buffet guy says “Be greedy when others are fearful and fearful when others are greedy.”
It’s seemed to work alright for him so far…
Think of recession’s as a sale at your favorite store.
If you saw your favorite pair of shoes that are originally $250 for $100 you would buy them in an instant.
A recession puts discounts on your favorite company’s stocks.
When you hear people say ‘if you invested in company x back in 2005 then you’d have this much today!
A recession gives you a second chance at these kind of opportunities.
The stock market is driven by human emotion and everyone’s fear causes them to panic and sell, shooting all these stock prices down.
It’s the old saying buy low and sell high.
As previously stated make sure you do your own research because we are not financial advisors.
Find what companies investments for you. We wrote an article on how Warren Buffet picks his stocks.