A stock market crash could occur at any time. Here are some tips to help you manage your portfolio.
A potential stock market crash greatly increases the risk of losing investments. Here are our tips for protecting your money.
Stock market crashes tend to increase price volatility. To prevent the risk of losing your investment, avoid giving in to panic. Letting your emotions get the better of you can lead to bad decisions!
Note that there is no point in making sales at a loss to determine the extent and duration of the event's potential impact over time. Long-term analysis is also useless in such cases. It usually only takes one or two years for the markets to forget the crash.
In the event of a stock market crash, most investors will panic, resulting in a large increase in supply that accelerates the decline in prices. This is the ideal time to buy. However, it is advisable to buy shares of so-called Dividend Aristocrats.
These companies are distinguished by their high profitability, which has allowed them to pay increasing dividends every year for more than 15 years. Moreover, these stocks are prized for their strong resistance to crashes.
Certain sectors of activity have demonstrated greater resistance to stock market crashes. These defensive sectors are less sensitive to economic cycles and are therefore preferable for investments. These include healthcare, consumer staples and utilities such as water, gas and electricity production/distribution.