How should a small investor prepare for future falling markets?

How do you prepare for a falling market?

Simply cut your losses of quickly every time, if you do that you do not need a hedge which I think is like trying to win a race while riding on the brakes. And inter-market diversification, even global, will not save you either. What will save you every time is making capital preservation job #1. You will always be around to pick up the multi year or decade lows after the big panics.
 
Last edited:
java said:
After I take it off when should I put it back on again? Should I trade my money or just buy and hold? If I take it off and the market goes higher what should I do? See, I have a lot of questions. Maybe I shouldn't invest. I think I'll just stick to trading. Because if I was an investor with a job or a source of income I would just buy every month and hold. Could you please ask "any serious investor" if I have 100k in Spy that I bought in 2006 non tax sheltered so I will pay a cap gains tax on anything I sell how much should I sell and what should I do with the proceeds. And also when I should get back in. Thank you....... finding a serious investor on this site.
More...
%%
2006 SPY?? If that investor does not mind 50%/+draw downs, well congrats on not paying much smaller capital gains tax. [IWM-small caps have done better, but with larger draw downs, so since i dont want any larger draw downs , LOL leave that to younger traders.] Number wise, so many in tax free accounts not likely they would steal that.CPA can help; but up trending bull markets can keep going up. For those that like to buy a cheap stock,downtrend target TGT has been going down past year + most likely will get cheaper, not that i would buy it
 
lojze said:
We have a bull market right now, but we will sooner or later fall into bear market. Better be prepared.

But how?

By reading blogs, following financial websites?

Anything else?
More...

1) Invest in companies that offer products/services that will do well in adverse economic conditions like thrift stores, payday loan companies, cash sending services like Western Union. Put yourself in the mindset of a person who has to live with a very tight budget, think what would that person do? What kind of services & products would that person most likely use? And invest in those companies that provide those kind of products/services.

2) Invest in companies that offer products/services that people will always need regardless of their income level like food, modest clothing and etc.

3) Invest in companies that offer products/services to rich people when they want to protect their wealth like gold, military defense (when the economy is bad, the US government tend to want to start a war even an arbitrary one just to divert attention)

4) Buy bonds. To stimulate economy, the interest rate might be held still or even lowered again and bond prices will go up as a result.

Good luck!
 
Hello,

It's very simple. You should not care if the market goes up or down. Cause you don't know anyway if market go up or down.

1. If you a trader trading for monthly income, buy and sell the market daily.

2. If you an investor preparing for retirement, continue to buy Vanguard Retirement Target Fund Index until the day you retire. You buy when it goes up, you buy when it goes down. When you retire, you have money waiting.


Nice and easy. I loveeeeeeeee simplicity
 
SimpleMeLike said:
Hello,

It's very simple. You should not care if the market goes up or down. Cause you don't know anyway if market go up or down.

1. If you a trader trading for monthly income, buy and sell the market daily.

2. If you an investor preparing for retirement, continue to buy Vanguard Retirement Target Fund Index until the day you retire. You buy when it goes up, you buy when it goes down. When you retire, you have money waiting.


Nice and easy. I loveeeeeeeee simplicity
More...

That's some good crack you're smoking
 
recession2016 said:
That's some good crack you're smoking
More...

Hello recession2016,

Yes, it is good crack. You have some comments on my post I made. You don't like Vanguard Retirement Target Fund Index? Its really good advice to contribute in an index found monthly for the older years. It is simple solution.
 
Number wise, so many in tax free accounts not likely they would steal that.
More...

LOL. And how many people are due to get social security? Some entitlements will have to change. No way around that. It won't be decided on the basis of what is most fair or right. It will be decided on the basis of votes. And the demographics of this country are changing. Hopefully the Roth IRA won't be impacted. If I could invest in it, I would.

I suppose no sense in planning for things that are unknown or too many what-ifs. But I'd at least consider the exit plan before committing significant capital to any plan.
 
You must log in or register to reply here.
Back
Top