Articles tagged with: Stock Market Crashes
Investors do worry about stock market crashes when stocks have rallied such as the case in 2013, but what retail investors should do is try to learn what the professionals do with their clients’ money and their own money. Very few fund managers sell out of stocks entirely. After all, cash never rallies, and it is widely known that bull markets always seem to crawl a wall of worry.
Stock market declines, especially the violent kind we refer to as “crashes,” are pretty hard to predict — for every crash one or two visionaries emerge who called the market decline with unusual accuracy. In time, we generally conclude that these visionaries were more lucky than prescient, because there are no records of prognosticators who predict market crashes more than once.