How do you prepare for a crash

2018 - Global Debt Levels

World economy at risk of another financial crash, says IMF

Debt is above 2008 level and failure to reform banking system could trigger crisis
www.theguardian.com

2017 - Brexit

IMF says Brexit would trigger UK recession

Annual report on the British economy predicts ‘negative and substantial’ effects if Britain left the EU
www.theguardian.com

2016 - Chinese Hard Landing

Slowdown in Chinese manufacturing deepens fears for economy

Factory activity cools for fifth month running as overseas demand for Chinese goods continues to fall
www.theguardian.com

2015 - Low oil prices

Oil price slump causes stock markets in UK and US to fall

Crude prices have hit a two-and-a-half month low, and UK has also seen fall in prices of copper and platinum
www.theguardian.com

I would prepare by maximising my time in the market.
 
[QUOTE/] I would prepare by maximising my time in the market.
[/QUOTE] What does that mean? Exiting the market?
 
DeeKie said:
[QUOTE/] I would prepare by maximising my time in the market.
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What does that mean? Exiting the market?
[/QUOTE]

I think it means that bears have been predicting doom for years...and they’ve been wrong. If you’ve a 5+ year time horizon, and you’re diversified, just stay invested and ignore the noise.
 
To prepare for a crash? Keep predicting it would happen every day for five or ten years and then if it finally does, tell everyone "I told you so, didn't I say it?!"....
 
Gorteen said:
Anticipate downturn in markets and amend investments, pension accordingly
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I can’t see how that would work well. No one can tell the future, no one can time the markets that well.

There are many examples I am sure but I remember the early 2016 warnings from a few large investment companies warning of an imminent crash. If you sold out you would have missed out a lot of gain since then.

I would say there might be some merit in anticipating market downturns if you are coming near retirement and you don’t want to take any more risk.
 
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Stock-market crash of 2016: The countdown begins

It’s time to start the countdown to the crash of 2016. No, this is not a prediction of a minor correction. Plan on a 50% crash.
www.google.com

Economist Harry Dent predicts 'once in a lifetime' market crash, says Dow could plunge 17,000 points

He’s a market watcher known for making bold calls, and now Harry Dent says the Trump rally is setting investors up for a stock market crash.
www.google.com

Still waiting for those drops.....! If your portfolio adjustment happened based on those predictions you'd give missed last four years of 20 percent gain, or whatever the MSCI world went up in interim.
 
fistophobia said:
You keep 25% of your holdings in cash or near cash securities, like I have.
Then you can go shopping when theres a sale on.
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How did you do in March 2020? Or in the last while?

I have been keeping 20% bond in my pension funds for the last 5 years or so and jumped in to rebalance to more equities in Dec 2018 and March 2020. Before that preferred 100% equity the last 15 years as was only building up then.

Interested to hear did people's crash plans work?
 
selfishly had hoped that Corona Crash would have been longer as still working now and adding to the pot. Might get my wish so the last year has been about max AVCs and adding to cash stash!
 
I just kept continuing to put modest amounts into the market on a monthly basis. Kept our pension savings and AVCs going as well. As someone said earlier, it’s about time in the market…not timing the market.

Has worked out ok for us, but sure who knows what’s coming around the corner !

g
 
“Far More Money Has Been Lost By Investors Preparing For Corrections, Or Trying To Anticipate Corrections, Than Has Been Lost In Corrections Themselves.” – Peter Lynch

Time in the Market, not Timing the Market

When should I invest? The answer is always now because investors are rewarded for time IN the market not timing the market.
globalwealth.ie
 
How to prepare for a crash..

Learn to budget- Cut your costs/subscriptions - Take stock of where you spend every euro - Give every euro a Job
Fix your mortgage rate - reduce this risk of rates increasing
Get rid of all consumer debt - Buy now pay later loans, Credit cards, personal loans, car loans . Be as lean as possible
Build cash reserves of at least three months expenses
Make yourself more valuable to your employer - To the self employed, your customer is your employer - Get better marketing skills & marketable skills.
Get your C.V. up to date - Once people start losing their job you will have increased competition chasing fewer roles.
 
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If a crash in stock prices were certain, stock prices would already be lower. I never understand why people - especially amateurs - think they know better that the market in a liquid market.
 
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