3 Ways to Plan for a Market Crash
The stock market has rebounded sharply off its March lows, with the S&P 500 rallying by nearly 40% in just over three months. Businesses are reopening across the U.S. and economic data has been generally stronger than expected, especially when it comes to unemployment and consumer confidence. Because of this, it may feel like the worst is definitely behind us and the 2020 market crash is a thing of the past.
This may certainly be the case, but we're not quite out of the woods yet. As you've probably seen, COVID-19 cases have been spiking in many parts of the United States in recent weeks, and several states have decided to roll their reopening plans back. So far, this has only mainly affected certain high-contact businesses like bars and restaurants, but if the outbreak isn't brought under control we could see further action taken.
Also, don't forget that second-quarter earnings season is coming up, and the numbers aren't likely to be pretty. There's also the upcoming elections, the trade war with China, and several other things that could turn into negative catalysts for the stock market.
Source Fool.com
