It’s normal for investors, especially those close to retirement age, to worry about fluctuations in the market and how it will affect their 401(k) plans.
And while there’s no way to avoid market volatility, there are a number of steps you can take before, during and immediately after a crash that will help you sustained minimal damage.
Additionally, having a diverse investment portfolio can ensure that any losses can be recouped over time.
In this article, we will go over how to create useful strategies that anticipate worst-case market scenarios, discuss the importance of risk management when it comes to investments, cover what to do during a crash, and list alternative investments that can serve as a buffer to any losses in your 401(k) plan.
Small-cap winners galoreThe big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.