“Worried About a Stock Market Downturn This Year? Here’s What to Do”
January 27, 2020
“1. Have a solid emergency fund
The one thing you need to remember about a stock market downturn is that you don’t lose money until you actually sell your investments at a loss. Imagine you buy a given stock at $90 a share, and its value drops to $60 per share when the market tanks on a whole. On paper, you’re out $30 per share you own. In reality, you’re out nothing unless you actually unload those shares at a lower price than what you paid for them…
2. Have some extra cash on hand to invest
A stock market downturn is generally considered a negative event — but actually, if you play your cards right, it could turn into a solid opportunity to make some money. The reason? If you have cash on hand, you may get to buy some quality stocks on the cheap…”
https://www.fool.com/retirement/2020/01/24/worried-about-a-stock-market-downturn-this-year-he.aspx
See the second point? I’m going to write an entire article about this subject at a later date. This strategy is exactly why there is no reason to fear a stock market crash. Just make sure to have liquid assets during any market pull back. Buy stock when they bottom out. Profit. It’s that simple.