8/04/2025
INFORMATIVE
What to Do (and Not Do) When the Stock Market Crashes
Market downturns can be unsettling—but with the right approach, they don't have to derail your long-term financial goals. Here's how to navigate the turbulence wisely.
✅ What You Should Do
🧘♂️ Stay Calm
Panic selling only locks in losses. Remember—markets move in cycles. Downturns are normal and often temporary.
📊 Review Your Portfolio
Reassess your asset allocation. Are you overexposed to equities? If rebalancing is needed, do it with intention—not fear.
📈 Stick to Your Plan
If your investment strategy was built with a long-term view, trust it. Don’t let short-term noise override smart planning.
💸 Keep Investing
Crashes can present buying opportunities. If you're using dollar-cost averaging, keep going—you’re buying at a discount.
🏦 Build Cash Reserves
Ensure you have an emergency fund covering 6–12 months of expenses. This cushion helps you avoid selling assets in a downturn.
📉 Consider Tax-Loss Harvesting
Sell underperforming assets to offset gains elsewhere. This can reduce your tax liability and free up capital for reinvestment.
Panic selling only locks in losses. Remember—markets move in cycles. Downturns are normal and often temporary.
📊 Review Your Portfolio
Reassess your asset allocation. Are you overexposed to equities? If rebalancing is needed, do it with intention—not fear.
📈 Stick to Your Plan
If your investment strategy was built with a long-term view, trust it. Don’t let short-term noise override smart planning.
💸 Keep Investing
Crashes can present buying opportunities. If you're using dollar-cost averaging, keep going—you’re buying at a discount.
🏦 Build Cash Reserves
Ensure you have an emergency fund covering 6–12 months of expenses. This cushion helps you avoid selling assets in a downturn.
📉 Consider Tax-Loss Harvesting
Sell underperforming assets to offset gains elsewhere. This can reduce your tax liability and free up capital for reinvestment.
❌ What You Shouldn’t Do
- Don’t make emotional decisions
- Don’t try to time the market
- Don’t check your portfolio obsessively
- Don’t abandon your long-term goals
As we say in England: keep calm and carry on.
A steady mindset is your most valuable asset during volatile times.
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