A short one. Its important to discuss that stocks can drop 40,60, or 80% in a crash.
The problem is that most crashes look similar at the on set: 10%-20%. It can turn back up or it can go down.
Do you have enough cash?
Buying something down 40% and watch it goes down 50% more from that point and you see if you can still hold on to it. Ask those that experience it the first hand, even if you know it, it’s a extremely shitty experience.
The more important thing is the guidepost that you can depend on. All big crashes look like small corrections. And end of small corrections can be upside.
Morgan Housel wrote sometime ago his plan for such drops. It doesn’t work for everyone but at least the
plan is fundamentally sound. A plan is useless if its not sound at all.
Notice most ......