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5 Ways to prepare for the next market crash

Stock market

5 Ways to prepare for the next market crash

by | Stock market

Ben Constanty

CEO, Smartlink

Disrupting online payments with smart contracts.

If 2020 has taught you anything, let it be that nothing is off-limits.

People had no idea and were severely underprepared as we quickly learned. Rush on grocery stores and loss of jobs caused a realization that being prepared is critically important.

This comes to finances as well. Businesses were closing and the stock market fell sharply.

Also, the power of the U.S. Dollar continues to fall as rates plummet and inflation attempts to take hold. Below are 5 ways you can prepare for the next market crash.

Buying Gold & Silver

Buy Gold and silver

Anytime the market falls all the gold bugs come out of the woodwork. Buy gold or buy silver, everything else is trash.

Now, that is an exaggeration, but they do have a point.

Precious metals have always been used as a hedge against stock market pullbacks and inflation. Do not confuse this with gold or silver ETF products.

Having physical gold and silver in your portfolio can give you protection and allow you to hold a physical asset that has stood the test of time.

Should everything fail, you will also have a means to barter for food and supplies.

Real Estate

Real estate - Prepare for the next market crash

Another way to prepare is through real estate. This is a double benefit because not only do you own the property, but you can rent it out for cash flow.

When markets crash you can typically find real estate at a discount.

Depending on location these discounts do not last long, and prices begin increasing relatively soon.

By having cash flowing properties, you can leverage these for additional asset purchases.

Bitcoin

Bitcoin - Prepare for the next market crash

A rather new but effective way to diversify your portfolio is Bitcoin. This cryptocurrency is the one that started it all.

As a decentralized way to transact peer-to-peer, people flock to this asset when turmoil enters the market.

While there are limited ways to purchase goods, it is an effective way to hedge against inflation and market pullback.

Like gold and silver, people turn to this to preserve wealth. Also, you can transact this with any major currency, giving you various exit options.

Collectables

Collectables - Prepare for the next market crash

An area people overlook that holds value over time are collectables.

These can include fine art, coins, and vehicles.

This market takes extreme due diligence because you want to ensure the product you purchase has always commanded demand.

As mentioned, coins are a good place to being.

Cash

Cash - Prepare for the next market crash

Lastly, sitting in cash is perfectly acceptable during a market slow down.

People always forget cash is a position.

The benefits to sitting in cash is it gives you the opportunity to buy assets at a lower price.

With cash, you can buy a house, gold, or Bitcoin at a lower price as others sell to raise capital.

Preparing for a market correction boils down to your individual needs and risk tolerance.

Take the time to evaluate your situation and plug any gaps you find.

That way, instead of worrying you are simply waiting for the next opportunity to make money.

Ben Constanty

CEO, Smartlink

Disrupting online
payments with smart contracts.

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