A friend told me about the stock market heading for the biggest crash in world history a week ago but i didn't believe nor listen to it, not till it popped up on an internet channel on my phone, then i did some research. GUESS WHAT I FOUND
It is speculated that the stock market meltdown could even happen in this month of October according to author and investor Robert Kiyosaki. Shares, Property, Gold and Bitcoin could all fall from it's inflated levels. There are three things that must be done to survive this crash not to be hugely affected from it.
It is said that due to the Chinese Property Market woes intensify, investors are getting anxious, such is property developer Evergrande who is set to default on debts totalling $300billion.
Cos of this Robert Kiyosaki is warning Evergrande could trigger a global stock and property crash. He called the Chinese property market a "house of cards" that is coming down and will bring global share and property prices with it.
He also suggested this could happen this month due to the fact that overtime October has seen plenty of stock market crashes , including the Wall Street Crash Of 1929 and Black Monday 1987. Also September and October are typically tough months for the stock market and this has also been the case once again this year.
Top US technology stocks such as Apple, Amazon and Facebook have plunged since hitting an all-time high in early September.
Monday's Facebook outage hammered its share price, and investors also fear it could be hit by stricter regulatory rules that could slow growth.
China urgently needs to contain the Evergrande crash: "If it cannot, markets could be in for a bumpy ride.
3 THINGS TO DO TO AVOID BEING AFFECTED
The last thing to do right now is sell shares in anticipation of a crash that may never come. Nobody should invest for a period of less than Five Years cos over such a timescale, the market has plenty of time to recover.
History shows that shares are volatile in the short term, but outperform almost every asset class in the longer run.
AJ BELL Investment Director Russ Mould said: "You have to expect a bit of volatility along the way, otherwise you shouldn't be investing at all."
Secondly investors should try as much as possible to have a balanced portfolio, with access to lower risk assets such as Bonds, Cash and Gold. Cos if all your investments are on high risks corners of the market, like US tech stocks or emerging markets, certainly the risk being taken is big. So to avoid this one must be exposed to know and be sure on what they invest their money on, and also be exposed to a crash if that be the case.
It is advised to never put all your eggs in one basket "Meaning" diversifying is a great method to reducing your exposure to whatever the stock market throws at us next.
Thirdly, if the stock market crashes, take advantage of buying opportunities. Cos shares, Gold, Silver and Bitcoin will also fall in the crash, which means the safest home for your money right now is cash.
This will allow brave investors to go shopping for bargains and buy these assets at bargain prices.
US billionaire Warren Buffet is the world's best known investor and he is also in favor of buying in the wake of a crash when others are running scared and selling. He famously said: "Investors should be fearful when others are greedy, and greedy when others are fearful."
Right now investors are fearful. If Kiyosaki is right and share prices crash, Investors must learn to be greedy really soon and having cash to hand will help.
Thanks For Reading
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STOPTo support your work, I also upvoted your post!
Wow.. Thanks for this
Mm. Especially the later part.
It is good to have those 3 different perspectives as an investor always.
Good piece.
Thanks very much I appreciate