Asked on 02 Nov 2018
a. Most expert investors don't know when markets will rise and fall. Not sure why the magic number 10 years? maybe 10 months or 10 weeks....
I dont think even Warren Buffet knows when the next crisis will happen with certainty.
b. More importantly, you should get yourself ready when it happens to take advantage of it. Gut up your financial emotions with 1M65 (read more about it please) and save as much as you could. Else when the market crash, you will turn cold feet and hold back your investments.
What if the crisis doesnt happen for a few more years, are you going to keep waiting until it happens? Just invest regularly and keep a warchest. Dont panic sell everything. Just think of it as a stocks sales where you can buy more stocks at a lower price.
There are people who view a market crash as opportunities.
Here are some stocks which you might want to take a look at: https://blog.seedly.sg/stocks-to-buy-in-the-next-market-crash/
I think fundamentally it is important to know what are some of the stocks and industry that generally do well in times of market downturn.
In the mentioned article, companies such as Alibaba Group Holding Limited, Alphabet Inc. (Google) and ETF such as SPDR S&P 500 or PowerShares QQQ ETF were mentioned. Might be worth looking at. :)
Hi friend! I'm going to quote Chris chin here from a slightly different question but in the same light that you can read here.
To me personally, I feel that it is good to DCA a monthly sum but hold a warchest of money that is on top of your 6 months rainy day fund. So eg you have $10k and your rainy day funds is $6k. Then the balance $4k you can use to invest during a crash but in companies only that you believe in with strong fundamentals. That's at least how I percieve things :)
"In a financial crisis, almost every stock is affected. However, you need to hold on to your stocks if you invested in good companies with good business fundamentals.
Many novice investors sell off when stock prices drop in a panic response, while institutional investors would buy more at low prices or sell off to invest in other good stocks in their watchlist that has suddenly become dirt cheap if they have made enough profits before the price drop below his profits.
During a financial crisis, It's your holding and buying power that helps you come out better and richer if you made the right investments."