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Help-What Should I do About a Stock Market Crash?

I got an email this morning from one of my freelance investment writing clients to find out if I could help investors worried about their 401k accounts after the Brexit stock market crash. Yesterday, Britain voted to leave the European Union-Brexit. I whipped out an article and decided, that even though I’m somewhat uncomfortable with video, I had to let you know how not to panic. 

Investment markets tanked today and left many investors worried and uncertain how to proceed. 

Here’s what to do now, after the Brexit stock market crash.

Please share this video, as investors are their own worst enemies and frequently make stupid moves and flee after a market drop. That behavior will leave to sub-par investing results.

Stock Markets Typically Trend Upwards

I created this chart to show that in spite of big market declines, the overall trend of investment markets is upwards. Although no one knows the future for certain, it’s likely that the market will rebound from it’s lows and trend upwards again. The market declines below correspond with bad news. In spite of the fact that most stocks fall after a big U.S. or international news shock, in the past, the stock prices rebound. 

Brexit Stock Market Crash-What to do when investments fall

Investing Takeaway for Brexit Stock Market Crash

  1. Choose an asset allocation and stick with it.
  2. Don’t jump in and out of the markets. Your returns will suffer and you’ll have to be right twice-once selling and again buying in. 
  3. If your skittish about market volatility, hold greater percentages of bond funds and lesser amounts of stock funds.
  4. Don’t keep any money in the investment markets that you’ll need within the next 5 to 7 years.

Keep Calm and Don’t Panic When Markets Crash

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