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How should you react during a market crash? This breakdown explains how to manage your portfolio when headlines turn negative.
Many investors feel the urge to sell when they see share prices falling, but reacting to short-term noise often undermines your long-term investing goals. This video explores the mechanics of market volatility, contrasting the difference between buying during positive news cycles and holding through economic downturns. We analyze why interest rate cuts and price drops are often part of the cycle rather than signs of permanent failure.
Your specific investment strategy depends heavily on your personal circumstances and your intended timeframe. Rather than trying to time the market, we examine how to structure your assets to withstand periods of stress. By focusing on your individual goals, you can build a resilient approach that ignores the panic and keeps you focused on your objectives.
Subscribe for weekly investment strategy breakdowns, and comment below on how you manage your portfolio risk when the market turns.
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It’s over
my issue is I am building long term but I also need a house deposit soon, I am hoping I can rely on inheritance from a grandparent soonish and then I can have it both ways (keep investments untouched and also have enough cash for a deposit) but I'm 28 now so I can't wait forever, I'm considering cashing out soon for deposit money and then starting to build again for long term. but if my soon to be 95 year old grandad dies and I get like £20,000 then I will feel stupid for selling but if he lives to 105 and I'm 38 then I'll wish I cashed out. I'm not trying to be callous but this is just life now, house prices are too high relative to wages
I've sold most after 38% pa for 10 years and buying the housing crash. When thw stocks and bond crash calms down, I'll start buying stocks again
When covid crashed the market, invested, then i invested more and then more. Dropped my cost basis so low 🙂
Going all the market at a single point is stupid. You should be investing in stages. Preferably reserving a piece of your paycheck to invest every payday. Even if the market begins to slide this steady drip of capital will gradually reduce your average cost basis and leave you much better off for when the market rebounds.
Alot of haters, good video, my concern is that we are advocating for much lower returns when we recommend a mix of bonds and equities.
For a millionaire who is 50 sure, but a 35 year old with 50k and even at full beans wont have much on retirement the difference between 10% and 6% returns are serious.
Buy Bitcoin
Nothing new here (for me) but really clearly and cleverly presented 👏
I like gold and silver, it usually goes up when other things go down.
hi Josh .. i kind off giggle while im watching this video. my portfolio is minus $1000 out of $25K and i am frantic and just want to get rid off it. Funny thing is that iam scared looking at red numbers. i think i should change all numbers to green😅. But this is what im going through now and i did sell when i get scared. Not good! but your video helped me alot understanding my self and trading. Thank you
i held until it went to 0… where do i cash that?!
What about when the dollar experiences hyperinflation and becomes basically worthless???
People don't realize the fluctuations in market value is a feature, not a bug. It gives you the opportunity to buy the dips (if you have money to invest). Just sit tight during downturns.
You have only been doing it 15 years? So all the good years then? I was doing what you are doing during the 1998 to 2008 period. I remember it being brutal. Yes thing recovered, but each time it recovered it crashed again.
Looking at the world I think we're closest to a total collapse of society than we realize. I think it's best to invest in tangible real life assets than whatever BS wall street is propping up
On the graph, why is "where most people sell" at the bottom of the trough? If people were selling there the graph would continue downward.
Buy low sell high is amateur stuff and triggers a taxable event. Buy low, never sell and borrow against it so it keeps growing.
You haven’t lost it until you panic sell. My portfolio has gained 600% since 2022 just by doubling down on every big dip
dollar cost average… that is literally the only way to do it
It would help if people stopped looking at their account value as money.
My issue is math, If I fear soon there will be a crash then even If it recovers in 15 years. So I would be break even. Why not wait with low rate growth savings, at 3% yearly lets say. And jump when there is a crash or at least the big bubble is away. If put my money and everything crashes 60% that is meaning that for next decade or so I will have no return. I prefer steady return. Or at least not buying when the 60%+ crash is a big possibility
15 years. You saw 0 full market cycles.
If my broker manages to lose all my money in a market crash then I pay their offices a visit with my AR and make him pay out what I'm owed in blood.
Better invest responsibly. Your life depends on it.
Peace. stay calm and buy the dip, no panic sell.
I just keep buying regardless of bearish or bullish markets. I’m doing dividend investments, and really only care about my amount of shares at the moment rather than the total price. I invest in ETF’s that have historically been paying 1% dividend returns monthly. With this, if the market falls, im still getting proportionally the same amount if shares, but currently they just cost less. Because my portfolio is very small, and i make reoccurring deposits into my account, I actually welcome bearish markets so that i can potentially buy more shares with my fixed ammount deposited.
I only really check out the markets every 2 weeks (every time I make a deposit) and I more or less just check the 1 month 1 day charts to see generally how much the market has moved up or down. I used to dabble in day trading, but I lost my money because I didn’t know any real strategies, and more or less treated my money like I was betting it all on black at the roulette table.
The time horizon point is what stuck with me most — a crash early on is painful on paper, but it barely registers over 20+ years. Reframing a drop as more shares at cheaper prices is the mindset shift most beginners need.
If you invest when the market is going up, that's good because everything you have invested previously has now gained value. If you invest when the market goes down, that's good because every dollar that you spend moving forward buys more of each share.
The only two times that the market going down will affect you is if a singular Company files bankruptcy that you are invested in or if you had just retired from work and we're relying on that nest egg.
Which is why financial advisors say that as you move towards retirement you need to start shifting out of stocks and into bonds to protect yourself from a crash
the more you touch your portfolio, the less you gain
‘Be fearful when others are greedy , and greedy when others are fearful’
Warren Buffett
and what about the sequence of returns risk, especially if you are above 55 years old??
How can I make good profits as a beginner starting with smaller to moderate amount
And then… there are those stocks defying the logic! As part of my company's ESPP I've been buying stock on a monthly basis since 2019 and the last 5 have been a nightmare, which means, I bought almost at the top. 2021 down 22.8%; 2022 down 38%; 2023 down 12,9%; 2024 for a change gone up 35%; 2025 went down again 18% and so far in 2026, is down 47%. Year after year I continued to be bullish and believed the tide would turn until this past August, where I finally stopped believing. I didn't sell but, I stop investing in this stock and moved to a different instrument all together. Once the stock start showing signs to change the trend, I might start buying again, at least to lower down my break even point. At this point, even with the vesting benefit, I'm down 53%!
When you start investing and stock market crashes, you have the golden opportunity to buy low and hold.
People trading on value will probably be fine.
People trading on sentiment/speculation….. less so.
Every time the market crashes…I find religion
You literally didn't answer your own question!
if you are young, and it crashes, you should be very happy.
The people in the comments haven't really seen a multi year bear market
It all depends on your time horizon. Markets can stay down a long time
Unless you did lump sump investing (which is unlikely for most people), anyone starting the usual DCA (a part of your paycheck every month) right before a crash basically started at the 2nd best time to start investing (best time to start is obviously in the middle of a crash).
Not watched yet my answer is you invest more
Hmm my understanding was that if a crash happens and you dont invest and it takes 10 years to bounce back lets say you could just lower your buy avarages in that time to articially lower the bounce back threshold and decrease the time it takes to "earn" again from like 10 to 4/5?
Bonds nowadays are not responding as usual. I'm not sure if the market crashes tomorrow if the bonds are going to be the safe heaven. Especially is the crash is related to the US and other countries' debt,
Keep all your monies under your pillow and pray for the best…..bury some in the garden together w your money plants… got good chance of growing uour cash there…
I would like to think that investing even in index funds is a bit of gamble, but very high likelihood gamble and high repeatability gamble. Too many people just think it's like guaranteed and stable 7-10% return no matter what, but it never is.