Another stock market crash may be coming. Here’s what I’m doing now

first_img Roland Head | Wednesday, 15th July, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Will the stock market crash again over the summer? I think it’s a serious risk. The coronavirus pandemic is still with us and, as yet, there’s no sign of a vaccine. Lockdown is being reinstated in some parts of the world, including some major US states.At this stage, I think we need to hope for the best and prepare for the worst. Today, I’d like to explain how I’m preparing for a possible crash — and why I’m still buying shares.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Two things I’m doingThe truth is that no one knows what will happen to the stock market over the next six months. What I do know is that I want to own shares in successful companies. I don’t mind a bit of short-term uncertainty if it means I can benefit from longer-term gains.To achieve this goal, I have a two-part plan. The first part of my strategy is to have a list of good quality companies I’d like to buy at cheaper prices. Defensive business, such as Unilever and home services company Homeserve, might fall onto this list. The criteria I look for include low levels of debt and a history of consistent profits.The second thing I’m doing is continuing to buy shares each month. The reason for this is that if you sit on cash waiting for the perfect moment, you’re likely to miss out. Timing the market is pretty much impossible. In my experience, you just have to stay invested and take advantage of opportunities as they arise.Shifting your portfolio into cash might feel safe, but you’re missing out potential share price gains and dividends. With interest rates so low, I don’t think this makes sense.I don’t really care if the stock market crashes!I tend to hold shares for many years. As a general rule, I only sell if I think that something fundamental has changed, or gone wrong, with the business. This means I’m not (too) bothered when the value of my shares drops during a market crash. Over time, I expect them to recover, unless I’ve invested in bad businesses.I find this approach is a big help when the stock market crashes. It means that all I have to do when the market crashes is look out for possible buying opportunities. I didn’t sell anything in March, for example, but I did buy as much as I could afford to.Will the UK economy bounce back?We’ve seen an initial burst of pent-up demand as UK businesses have reopened. But the outlook is very uncertain. Big retailers, such as Boots, Halfords and John Lewis have already announced thousands of job cuts. So have businesses linked to the airline sector, including easyJet and Rolls Royce. My feeling is that the worst may still be to come. The government has done a lot to support businesses through lockdown, but these measures are expected to taper over the next few months.As this happens, companies will be forced to adapt their operations to reflect real demand. I suspect that economic activity will remain lower than it was before the pandemic struck. This could lead to a longer period of weak trading for many companies. But the best businesses should still do well. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Enter Your Email Addresscenter_img See all posts by Roland Head Another stock market crash may be coming. Here’s what I’m doing now I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Homeserve and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images Our 6 ‘Best Buys Now’ Shareslast_img

Leave a Reply