To Invest During a Market Crash, Start With This Stock
You should always be ready to put your money to work in the next bear market. Everybody knows that another crash will come eventually, but we don't know when. That's just a market reality, and stock markets have been setting themselves up for a large correction since the coronavirus rebound started. Share prices are generally rising even though many of the underlying businesses are in deep trouble. Stocks in the S&P 500 (SNPINDEX: ^GSPC) index are trading at an average of 44 times trailing earnings today. That's up from 28 times earnings a year ago and the highest readings we've seen since the market panic of 2008.
It's a good idea to keep some dry powder at hand so you can take action when the other shoe drops. Baron Rothschild said that you should "Buy when there's blood in the streets, even if it is your own." On that note, here is the first stock I will think of when the next big correction comes. If it goes down alongside a broad market drop, I'll just buy more at a bountiful discount.
Image source: Getty Images.
Source Fool.com
