Market Sell-Off Survival Guide

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Coronavirus fears spooked the stock market this past week, but there's no need to panic. We've got 10 things you need to know about the sudden drop, four ways to get ready to possibly benefit from the next one, and four events that could trigger a Wall Street nosedive in the year ahead.
— Nathan Alderman, Stock Up Editor

The Stock Market Sell-Off: 10 Things You Need to Know


Wait, wait, you're telling us that markets sometimes go ... what's that word, the not-up word ... down? After a record bull run for Wall Street, you can be forgiven for forgetting what it's like to watch the market take a tumble. Though this past week's significant drops for the Dow, Nasdaq, and S&P 500 were all-too-real reminders that markets do occasionally recede, they didn't exactly make for a fun trip down memory lane.

Still, the market's short-term movements can sometimes blind investors to its long-term trajectory. We've compiled 10 soothing facts to help slow your pulse, lower your blood pressure, and ease your mind. Here's a quick peek at the first few:

  1. Sell-offs happen. A lot. You can expect a pullback of at least 10% roughly once every other year on average.
  2. They rarely last long. Over the last 70 years, the market has seen significant drops 37 times. On 23 of those occasions, the market bounced back within 104 days. Since 1984, the market's taken longer than that to bounce back only three times out of 14.
  3. Almost no one can predict them. The events that trigger them — like, say, a new, fast-spreading viral outbreak — don't tend to announce themselves ahead of time.
  4. They come from the gut, not the brain. Market sell-offs tend to arise out of fear and other unchecked emotions rather than cool-headed logic.
  5. Short-term traders suffer the worst. Folks who lunge for the sell button at every market dip post deeper losses than those who stay calm and keep their eyes on the horizon.

Feeling better already? Just wait until you read the rest.


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Afraid of a Crash? Make It a Moneymaker Instead

Okay, now you're armed with better information about the pullback we just went through. But what can you do about it? How can you prepare for the next one? We've got you covered.

Before the next downturn hits, we've got four easy ways to get yourself ready. You'll learn how to...

  • Show your fears who's boss.
  • Reposition your portfolio to soften any future blows.
  • Line up a wish list for the next time your favorites go on sale.
  • Protect yourself from yourself by taking matters out of your own hands.

Don't get scared — get prepared. To learn how, read the rest.


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These 4 World Events Could Kick Off a Market Crash in 2020

Recent turbulence aside, the market's been in cheerful spirits for almost 11 years now. Still, all good things come to an end sooner or later, and this year holds four possible — but far from certain — events that could leave Wall Street even more rattled than it already is. That's why you'll want to keep an eye on...

  • The possible further spread of the Wuhan coronavirus
  • A reignition of the U.S.-China trade war
  • War or further attacks in the Middle East
  • A contentious presidential election in the U.S.

For more details on why each of these possibilities might send the market southward, read the rest.


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