'To follow Warren Buffett's famous advice, I'm being greedy when others are fearful. You can look at a market crash as a sign to stop investing, or you can look at it as a discount on stocks that will almost surely go back up in value again.'
However, there are some conditions in place that allow me to make this decision. First of all, I have a healthy emergency fund and very few fixed costs. This alone provides me with a good level of financial security. When needed, I am able to cut my costs down very low, and I have enough money in a. This gives me plenty of time to weather this downturn and future changes in the market.
I don't pick stocks, and I don't plan to start doing so in the midst of a financial crisis. Instead, I prefer to. These are diversified, by design, and passively managed, meaning I can check in on them every few months and otherwise leave them be. I invest in index funds through Vanguard and follow the three-fund portfolio approach, which dictates that you spread your money out between a domestic stock "total market" index fund, an international stock "total market" index fund, and a bond "total market" index fund. I'll be focused on investing more in stocks.
Chances are high that we've not yet seen the worst of this. The stock market will likely continue to lose value as businesses remain shuttered. There's reason behind the fear that if you funnel your money into the stock market right now, it will lose value almost immediately — it probably will. However, no one can predict when, exactly, the stock market will bottom out. Even if you lose value immediately on your investments, the value you'll gain by getting in early once the stock market starts to recover will likely outweigh that loss.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Cost Of Coronavirus: Pandemic Park Closures Cut Disney Revenue By $1 BillionThe global pandemic exacted a heavy toll on Disney theme parks, costing the Magic Kingdom an estimated $1 billion. Now, Disney is plotting tentative steps to re-open its parks, starting in Shanghai Disney Resort on May 11.
Read more »
$1 million anonymous donation funds bonuses for hospital employees on front linesThe donation will go to all workers on staff, from nurses and lab techs to custodial staff and mailroom clerks, who have worked at Dominican Hospital in Santa Cruz for at least a year.
Read more »
Brett Favre to Repay $1 Million for Speeches He Never GaveFormer NFL star Brett Favre addressed his alleged role in a Mississippi welfare scandal via Twitter on Wednesday night. Get the latest updates here.
Read more »
Disney earnings plummet more than 90% as coronavirus wipes out more than $1 billionWalt Disney Co. profit dove more than 90% in the second quarter, an example of the drastic effects on the company from the COVID-19 pandemic, which...
Read more »
Police chase leads suspect to drop almost $1 million on highway during pursuitSuspects in California stopped in the middle of a police chase to drop two cardboard boxes full of cash totalling almost $1 million dollars on the side of a road before they were apprehended by a police officer and their K9 partner named Beny. The incident took place in the late afternoon of May 1 when
Read more »