Recessions & Crashes: Memories & Lessons

[winston]

3 Things You Shouldn't Do If the Stock Market Crashes

by Jennifer Saibil

1. Don't panic-sell
2. Don't miss new opportunities
3. Don't rush in

Source: The Motley Fool

https://finance.yahoo.com/news/3-things ... 00450.html

[winston]

Taking stock of market plunge

By RISEN JAYASEELAN

Source: The Star

https://www.thestar.com.my/business/bus ... ket-plunge

[winston]

Here's the No. 1 Reason to Buy Stocks During a Sell-Off

by vAdria Cimino

You'll find many terrific companies trading from reasonable to even bargain levels.

Source: The Motley Fool

https://finance.yahoo.com/news/heres-no ... 00740.html

[winston]

This Is Why You Don’t Panic-Sell

by Brett Eversole

Investing is a “loser’s game.” And in a loser’s game, skill won’t always lead to success.

In fact, in a loser’s game, you shouldn’t focus on trying to win. You should focus on minimizing mistakes.

The problem with panic-selling is twofold…

First, you spend more time than you might expect out of the market. This strategy would have left you uninvested about 25% of the time over the past 30 years.

The second problem is worse. Markets tend to rebound quickly after bouts of volatility. So if you panic sell, you’re missing those recoveries.

Source: Daily Wealth

https://tradesoftheday.com/2024/08/23/t ... anic-sell/

[winston]

How to Build a Recession-Proof Stock Portfolio

Many cyclical stocks tend to underperform during recessions as consumers cut back on non-essential purchases and businesses tighten budgets.

On the other hand, defensive stocks – those in sectors like healthcare, utilities and consumer staples – can hold their value better during economic downturns, as these sectors provide essential goods and services that remain in demand regardless of economic conditions.

For many investors, this may involve shifting away from high-growth, high-volatility sectors and increasing holdings in stocks and assets that have shown resilience in past recessions.

Diversification is a key strategy for protecting a portfolio during a recession. By spreading investments across different asset classes and sectors, investors can reduce the risk of heavy losses if one area of the market suffers.

A diversified portfolio includes a mix of stocks, bonds and other assets that may not move in the same direction during economic shifts.

Diversifying across industries, asset classes and geographies, can further increase the portfolio's resilience.

Prioritize companies with strong fundamentals, stable earnings and low debt levels. Companies that provide high dividends may also offer added stability, as dividend payments provide regular income and can help offset declines in stock prices.

Defensive Sectors to Consider for a Recession:-
1. Healthcare
2. Utilities
3. Consumer staples
4. Telecommunications

Source: Smart Asset

https://finance.yahoo.com/news/build-re ... 03615.html

[winston]

Even the Biggest Market Fears Rarely Matter

by Brett Eversole

History teaches us that even in a list of the biggest, most important worries, few of them spiral into the worst-case scenarios everyone expects.

Make sure you have stop losses in place and follow them. But don’t panic.

This current bout of fear – like almost all the rest – will likely go down as nothing more than one more brick in the Wall of Worry.

Source: DailyWealth.com

https://dailytradealert.com/2025/03/19/ ... ly-matter/

[winston]

Warren Buffett’s top 5 tips for surviving a bear market

1. Be fearful when others are greedy, and be greedy when others are fearful.
2. Cash is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent.
3. Big opportunities come infrequently. When it’s raining gold, reach for a bucket, not a thimble.
4. You should always adapt your consumption to your income. You shouldn’t try and adjust your income to your consumption.
5. If an ark may be essential for survival, begin building it today, no matter how cloudless the skies appear.

First, you want to make sure you have enough cash to get through any financial difficulties that may come up. Second, be prepared to take advantage of investment opportunities that arise during bear markets.

Preparing now can help ensure that you don’t just survive the next bear market but use it to position yourself for long-term success.

Source: Barron's

https://finance.yahoo.com/news/warren-b ... 20402.html

[winston]

Bear Market Tip: Stop Buying the Dip

by Chris Johnson

The rules of the game had changed. Buying the dip in this environment wasn’t savvy—it was self-sabotage.

In bull markets, optimism reigns. Investors expect good times to continue, and buying the dip becomes an act of faith in the long-term strength of the market.

But bear markets are different beasts. They cycle through distinct phases of sentiment—from denial, to hope, to fear, to disgust.

Markets don’t just fall off a cliff in bear markets—they slide down what’s called a slope of hope.

Every rally gets sold off, and stocks slide lower and lower as that hope gets chipped away.

Stop buying the dip — unless you want to stand in the way of stocks finding their bottom.

Source: Money Morning

https://dailytradealert.com/2025/04/28/ ... g-the-dip/

[winston]

What a Recession Could Mean for Stocks

by Sean Michael Cummings

The U.S. market has been a strong outperformer in recent years. Over time, U.S. investors have been conditioned to “buy the dip.”

But you might want to wait on this one… for a few more weeks at least.

A double-whammy of “correction and recession” turned stocks sideways for a full year. But when a recession didn’t appear, stocks rallied about 12%.

If the U.S. macro picture starts to deteriorate, cracks will appear in data like U.S. housing starts and jobless claims.

Another recession indicator that’s flashing red today – high-yield bond spreads.

Source: Daily Wealth

https://dailytradealert.com/2025/05/01/ ... or-stocks/

[winston]

1 Thing Smart Investors Know About Bear Markets

by David Jagielski

Key Points

Holding investments during a bear market can be unnerving and stressful.

Buying stocks when prices are low, however, can set you up for big returns later on.

Warren Buffett says temperament, not intellect, is what you need to do well in the markets.

Source: The Motley Fool

https://finance.yahoo.com/news/1-thing- ... 00541.html