How to protect your money against a market crash
The good news is that regardless of whether a crash is looming or not, there are steps you can take to keep your investments as safe as possible.
Most importantly, stay focused on the long term and try to avoid getting caught up in the market’s day-to-day movements. The market will always experience short-term volatility, even in strong economic times. Over the long run, though, it has historically earned positive average returns.
By holding your investments for the long term, you’re more likely to see positive returns, on average, over time. Your portfolio may take a hit in the short term if the market crashes, but because the stock market has a strong track record of bouncing back from volatility, your investments will likely recover as well.
The key, then, is to make sure you’re investing in solid long-term stocks. Not all stocks can survive a market crash, but companies with strong underlying business fundamentals are more likely to pull through even the most severe downturns.