How To Make The Most Of A Stock Market Crash

There is a lot of talk about a possible stock market crash lately. A lot of people are scared and they have good reason too if they have a large sum of money in stocks and are not ready to ride it out. For the average person, this doesn’t affect us much if at all but if you are smart about it you can take advantage of a stock market crash.

Why investing in the stock market during a crash is a good idea.

During the crash, back in March, the U.S. Government tossed in a trillion dollars which upset a lot of people when they cold have used that money for other needs for our country. What most people did not realize was that this was a smart move. They dumped in as much money as they could and in turn when the market rose the value of those stocks raised the overall value to an insane level. Not only that those stocks are collecting dividends while it sits.

When playing the stock market the best thing you can do is buy when the market is low and sell when it is high. During a crash those that have extra money they invested come out on top when the tides turn. Even if you do not have a lot of money you can get started investing even a few dollars using sites and apps like stash to buy small amounts of stock while the prices are low and profit potential is high. (Join Stash now and get $20 to invest for free. Be sure to turn on your push notifications because Stash gives away free stock every week.)

If you already have stocks resist the urge to sell them and get out of the stock market. Ride it out with any stocks that are at a loss of profit and give the economy time to turn around to get your money back.

Think about real estate

If you are in the market for a new home or looking to get into the real estate market a stock market crash can be a world of opportunity. As one market crashes others tend to follow suit. After a stock market crash banks are often offering amazing mortgage rates at the same time more real estate tends to hit the market driving down the market value of real estate. When the value rebounds you walk out with a profit.

Invest in metals.

When the market drops to bare market level you will see the price of metals like gold and silver will drop as well. These are seen as good investments to buy and hold in your own home. If you are looking for a metal that will hold its value over time and be useful if the paper dollar ever crashes buying silver bars at a low price gives you a good physical investment that can be sold for a profit later or held on to if you fear a crash in the dollar. I have a friend that is very happy investing in silver and has had great success using it similar to a savings account because of the extra steps involved in selling it rather than heading to the grocery store.

Max out your 401k

Your 401k is invested into the stock market. A stock market crash can be a big hit to your 401k but you can fight it by maxing out your 401k when the market starts to downturn. Just like when investing money flat out tossing the max into your 401k during a drop in the market allows you to ride out the drop and see big returns when it is time to retire. This strategy works best for younger investors that have years before they will be cashing in their retirement fund.

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