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Stock market crash guide Seedly

Seedly's Ultimate Guide to Stock Market Crashes and What to Do

profileSudhan P

Stock market crashes are inevitable.

According to a compilation from CNBC, there have been 13 bear markets since 1932.

Source: CNBC (data as of 14 March 2020)

This includes the 2020 coronavirus-driven crash, which saw global stock markets plummet down to Earth.

The US’ S&P 500 index in March 2020 plunged 34% from a then-record high on 19 February 2020.

Market participants have now found the next thing to fear, and that’s the debt crisis at China Evergrande.

Talks are rife that the heavily-leverage Chinese conglomerate could spark the next stock market crash.

No matter whether a known or a black-swan event brings about the next bear market….

… it’s paramount that investors arm themselves with the relevant knowledge on how to emerge stronger from a market crash.

Because history has shown that indices like the S&P 500 do recover after a crash.

Source: Robert Shiller data; National Bureau of Economic Research

With that, here are some of our past popular articles on the topic of stock market crashes that investors might want to re-visit.

You can bookmark this page to refer to whenever you need it as well.

#1: Preparing for the Next Bear Market

What we know is that there will be another market crash. It’s just a matter of when.

So even before the next stock market crash comes, we should prepare ourselves for it.

This cheat sheet will come in extremely handy.

It breaks down what you should do into three simple steps.

#2: Staying Strong Emotionally During a Market Crash

Imagine we are in the midst of a stock market crash, and everyone around you is panicking.

How do you stay level-headed?

It’s certainly isn’t easy to remain sane during volatile market periods.

As for me, great reminder quotes from Warren Buffett help me to be focused and stay disciplined.

Hope they will help you too.

Speaking of Warren Buffett, you can listen to what Buffett had to say about the 2020 COVID-19 crash here.

Looking for more tips (especially the practical ones) to help you invest well during stock market volatility?

We’ve heard your calls.

Here are four tips to navigate future stock market volatilities like a pro!

Most importantly, during a market crash, DO NOT panic-sell.

Just imagine for a moment selling your stocks emotionally last year, only to regrets a few months later.

Panic-selling in a plunging stock market will just crystalise your paper losses.

If the investments we have bought are of high quality in the first place, they usually bounce back strongly from big sell-offs.

So, we should stay the course.

#3: Stocks Ideas To Add To Your Shopping List

If you are into picking individual stocks and looking for high-quality companies to research for your stock-market-crash shopping list, here are some articles for you to comb through.

For Singapore-Listed Stocks

For US-Listed Stocks

For a Mix of Singapore and US Stocks

For Singapore REITs Exposure

Of course, there are also exchange-traded funds (ETFs) and robo-advisors for you to consider investing in for the long run.

Looking for a Like-Minded Community of Investors to Help You Stay Sane During a Market Crash?

That’s what you have with an investing community here at Seedly. Join us now and network with fellow investorsWe have exclusive investing reports for you to claim for FREE too!  

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. 

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About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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