Instead of Panicking About a Market Crash, Do This

Since the market crash of March 2020, the S&P 500 has risen by an incredible 50%. To put into perspective just how big those gains are, consider that from 2017 through the end of 2019, the index didn't even rise by 45%. The gains amassed over the past 17 months have been extraordinary. You can blame that on retail investors, meme stocks, boredom, stimulus, or a combination of all of those and/or other factors. But there's no denying that many stocks are trading at obscene multiples right now.

However, the solution isn't to just dump all your holdings and hang on to cash while you wait for a correction in the markets. Doing that could result in missing out on profits along the way. Even the world's smartest investors don't try to predict market crashes, because it's impossible to do. Instead of worrying about what may seem like an inevitable plunge, you can still safely invest in the stock market by doing the following:

Image source: Getty Images.

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Source Fool.com