4 Ways to Silence Market Crash Fears and Safeguard Your Money

Motley Fool2021-07-28

The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...

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SalTheFun
·2021-08-02
Good to read and know this… emotionally control…
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GuSen
·2021-07-29
Fear not of the crash…Fear what you will miss out when you fail to act when the crash comes along!
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tek
·2021-07-29
Good read
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tig2021
·2021-07-29
Best way is to stay out of the market.
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1
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CoolFox
·2021-07-29
Makes totally sense for me.Diversification aligned with risk tolerance is really the key to enjoy the market ups and downs without becoming crazy every single day.
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2
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- peng321:
  agree... can sleep well at night
  2021-07-29
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- 李苗苗:
  只要在范围内，就还能安稳
  2021-07-29
  Reply
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Chris68
·2021-07-29
Good advice!
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2
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- GeneV:
  ??
  2021-07-29
  Reply
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diggydog
·2021-07-29
Great article
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1
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ming22
·2021-07-29
Agreed, portfolio, long term strategy... All important
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- Chris68:
  Yup
  2021-07-29
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MengYang
·2021-07-29
Great advice
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1
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YeanPin
·2021-07-29
Nice
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4
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MireyaMiya万亿丰
·2021-07-29
Noted.
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2
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DMC8
·2021-07-29
Awesome
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4
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ToongMH
·2021-07-29
Good to read
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1
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- 123321Alex:
  ok
  2021-07-29
  Reply
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tcs
·2021-07-29
Noted with thanks
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2
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- tcs:
  thanks?
  2021-07-30
  Reply
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Orangetrader
·2021-07-29
?good advise
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1
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Merc8123
·2021-07-29
Good portfolio management advice. ?
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7
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seojun
·2021-07-29
Gasp i will do that
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3
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Cassjo
·2021-07-29
Ok
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2
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STKG
·2021-07-29
Portfolio management is important.
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3
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Kencom
·2021-07-29
Individual has to manage its ability to cope with losses; not speculate on the edge of the fence & injure badly.
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- aldeen:
  True
  2021-07-29
  Reply
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- PYEO:
  Yes, like please.
  2021-07-29
  Reply
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And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".SPX","symbol_name":"S&P 500 Index","start_time":0,"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","article_id":"2154918711","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","pubTimestamp":1627462515,"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".SPX":"S&P 500 Index",".DJI":"道琼斯",".IXIC":"NASDAQ Composite"},"translate_title":"4种方法消除市场崩溃的恐惧并保护你的钱","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9},"content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":805320804,"gmtCreate":1627861964808,"gmtModify":1703496602175,"author":{"id":"3579809773434763","authorId":"3579809773434763","name":"SalTheFun","avatar":"https://static.tigerbbs.com/69c72146aa04d3efddd999f936505379","vip":1,"crmLevel":8,"crmLevelSwitch":1,"authorIdStr":"3579809773434763","idStr":"3579809773434763"},"htmlText":"Good to read and know this… emotionally control…","listText":"Good to read and know this… emotionally control…","text":"Good to read and know this… emotionally control…","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/805320804","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":808930120,"gmtCreate":1627549363160,"gmtModify":1703492137462,"author":{"id":"3581847021927100","authorId":"3581847021927100","name":"GuSen","avatar":"https://static.tigerbbs.com/1b70044f21c62e929a7c4b5157b5a273","vip":1,"crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"3581847021927100","idStr":"3581847021927100"},"htmlText":"Fear not of the crash…Fear what you will miss out when you fail to act when the crash comes along!","listText":"Fear not of the crash…Fear what you will miss out when you fail to act when the crash comes along!","text":"Fear not of the crash…Fear what you will miss out when you fail to act when the crash comes along!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/808930120","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801724214,"gmtCreate":1627536866738,"gmtModify":1703491919788,"author":{"id":"3586389655995592","authorId":"3586389655995592","name":"tek","avatar":"https://static.tigerbbs.com/5d4878ec9493682d5002a528c991a712","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"3586389655995592","idStr":"3586389655995592"},"htmlText":"Good read&nbsp;","listText":"Good read&nbsp;","text":"Good read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801724214","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801712344,"gmtCreate":1627534517388,"gmtModify":1703491874078,"author":{"id":"3587008457873110","authorId":"3587008457873110","name":"tig2021","avatar":"https://static.tigerbbs.com/86558e2c1be0fae967630b306994ef5a","vip":1,"crmLevel":2,"crmLevelSwitch":1,"authorIdStr":"3587008457873110","idStr":"3587008457873110"},"htmlText":"Best way is to stay out of the market.&nbsp;","listText":"Best way is to stay out of the market.&nbsp;","text":"Best way is to stay out of the market.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801712344","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801464563,"gmtCreate":1627528809952,"gmtModify":1703491765333,"author":{"id":"3584782885850103","authorId":"3584782885850103","name":"CoolFox","avatar":"https://static.tigerbbs.com/53ed2b2a4ca54289d3bee0a3310b5704","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3584782885850103","idStr":"3584782885850103"},"htmlText":"Makes totally sense for me.Diversification aligned with risk tolerance is really&nbsp;the key to enjoy the market ups and downs without becoming crazy every single day.","listText":"Makes totally sense for me.Diversification aligned with risk tolerance is really&nbsp;the key to enjoy the market ups and downs without becoming crazy every single day.","text":"Makes totally sense for me.Diversification aligned with risk tolerance is really the key to enjoy the market ups and downs without becoming crazy every single day.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/801464563","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5366696,"gmtCreate":1627542354249,"gmtModify":1663231662529,"authorId":4087387556186030,"author":{"id":4087387556186030,"idStr":"4087387556186030","authorId":4087387556186030,"name":"peng321","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":4,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801464563,"type":1,"supId":0,"prevId":0,"content":"agree... can sleep well at night","text":"agree... can sleep well at night","html":"agree... can sleep well at night"},{"id":5365306,"gmtCreate":1627529225542,"gmtModify":1663231654627,"authorId":3479274710327383,"author":{"id":3479274710327383,"idStr":"3479274710327383","authorId":3479274710327383,"name":"李苗苗","avatar":"https://static.laohu8.com/picture41","vip":8,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801464563,"type":1,"supId":0,"prevId":0,"content":"只要在范围内，就还能安稳","text":"只要在范围内，就还能安稳","html":"只要在范围内，就还能安稳"}],"langContent":"EN"},{"id":801409851,"gmtCreate":1627525603173,"gmtModify":1703491681312,"author":{"id":"3575974639321365","authorId":"3575974639321365","name":"Chris68","avatar":"https://static.tigerbbs.com/1ae39a12c3ba237f3b001689ec9a549b","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3575974639321365","idStr":"3575974639321365"},"htmlText":"Good advice!","listText":"Good advice!","text":"Good advice!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/801409851","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5365559,"gmtCreate":1627531013107,"gmtModify":1663231655931,"authorId":3570741525676370,"author":{"id":3570741525676370,"idStr":"3570741525676370","authorId":3570741525676370,"name":"GeneV","avatar":"https://static.tigerbbs.com/f07571419f8558c92b400555a5813b59","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.09.12","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":7,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801409851,"type":1,"supId":0,"prevId":0,"content":"??","text":"??","html":"??"}],"langContent":"EN"},{"id":801563760,"gmtCreate":1627523343050,"gmtModify":1703491614190,"author":{"id":"3575091423649914","authorId":"3575091423649914","name":"diggydog","avatar":"https://community-static.tradeup.com/news/476e481044aa54d1d955e8bc4b856dd4","vip":1,"crmLevel":7,"crmLevelSwitch":0,"authorIdStr":"3575091423649914","idStr":"3575091423649914"},"htmlText":"Great article","listText":"Great article","text":"Great article","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801563760","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801581124,"gmtCreate":1627522992268,"gmtModify":1703491599400,"author":{"id":"3571044771112848","authorId":"3571044771112848","name":"ming22","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3571044771112848","idStr":"3571044771112848"},"htmlText":"Agreed, portfolio, long term strategy... All important&nbsp;","listText":"Agreed, portfolio, long term strategy... All important&nbsp;","text":"Agreed, portfolio, long term strategy... All important","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/801581124","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5364800,"gmtCreate":1627525623701,"gmtModify":1663231652555,"authorId":3575974639321365,"author":{"id":3575974639321365,"idStr":"3575974639321365","authorId":3575974639321365,"name":"Chris68","avatar":"https://static.tigerbbs.com/1ae39a12c3ba237f3b001689ec9a549b","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801581124,"type":1,"supId":0,"prevId":0,"content":"Yup","text":"Yup","html":"Yup"}],"langContent":"EN"},{"id":801580709,"gmtCreate":1627522903901,"gmtModify":1703491595839,"author":{"id":"3575113315907312","authorId":"3575113315907312","name":"MengYang","avatar":"https://static.tigerbbs.com/2dece979ff56347c710918e7aa49d224","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3575113315907312","idStr":"3575113315907312"},"htmlText":"Great advice","listText":"Great advice","text":"Great advice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801580709","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801536003,"gmtCreate":1627522208502,"gmtModify":1703491573125,"author":{"id":"3564697477514317","authorId":"3564697477514317","name":"YeanPin","avatar":"https://static.tigerbbs.com/13a42b01aa495210419cb03d7d9b98ef","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3564697477514317","idStr":"3564697477514317"},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801536003","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801289809,"gmtCreate":1627518615301,"gmtModify":1703491457714,"author":{"id":"3580082297864003","authorId":"3580082297864003","name":"MireyaMiya万亿丰","avatar":"https://community-static.tradeup.com/news/1124aa19e932df4e4bb55e398ab6f78a","vip":1,"crmLevel":2,"crmLevelSwitch":1,"authorIdStr":"3580082297864003","idStr":"3580082297864003"},"htmlText":"Noted.&nbsp;","listText":"Noted.&nbsp;","text":"Noted.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801289809","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801672668,"gmtCreate":1627516891354,"gmtModify":1703491395167,"author":{"id":"3579992296424941","authorId":"3579992296424941","name":"DMC8","avatar":"https://static.tigerbbs.com/65aa8f5f6299558ce2ab36482793f750","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3579992296424941","idStr":"3579992296424941"},"htmlText":"Awesome&nbsp;","listText":"Awesome&nbsp;","text":"Awesome","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801672668","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801645840,"gmtCreate":1627516575880,"gmtModify":1703491383652,"author":{"id":"3579230468032082","authorId":"3579230468032082","name":"ToongMH","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3579230468032082","idStr":"3579230468032082"},"htmlText":"Good to read","listText":"Good to read","text":"Good to read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/801645840","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5362868,"gmtCreate":1627516615704,"gmtModify":1663231642738,"authorId":3571791273839540,"author":{"id":3571791273839540,"idStr":"3571791273839540","authorId":3571791273839540,"name":"123321Alex","avatar":"https://static.tigerbbs.com/807b76e84e44c6640b1aaa50fcb19a44","vip":1,"currentWearingBadge":{"badgeId":"972123088c9646f7b6091ae0662215be-3","templateUuid":"972123088c9646f7b6091ae0662215be","name":"Legendary Trader","description":"Total number of securities or futures transactions reached 300","bigImgUrl":"https://static.tigerbbs.com/656db16598a0b8f21429e10d6c1cb033","smallImgUrl":"https://static.tigerbbs.com/03f10910d4dd9234f9b5702a3342193a","grayImgUrl":"https://static.tigerbbs.com/0c767e35268feb729d50d3fa9a386c5a","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"93.85%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1100},"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801645840,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":801651658,"gmtCreate":1627516092474,"gmtModify":1703491363701,"author":{"id":"4089886687733990","authorId":"4089886687733990","name":"tcs","avatar":"https://static.tigerbbs.com/e948df521ed98b7e9f105cfb812067fb","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4089886687733990","idStr":"4089886687733990"},"htmlText":"Noted with thanks","listText":"Noted with thanks","text":"Noted with thanks","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/801651658","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5373518,"gmtCreate":1627602361802,"gmtModify":1663231690639,"authorId":4089886687733990,"author":{"id":4089886687733990,"idStr":"4089886687733990","authorId":4089886687733990,"name":"tcs","avatar":"https://static.tigerbbs.com/e948df521ed98b7e9f105cfb812067fb","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801651658,"type":1,"supId":0,"prevId":0,"content":"thanks?","text":"thanks?","html":"thanks?"}],"langContent":"EN"},{"id":801653221,"gmtCreate":1627516047463,"gmtModify":1703491362402,"author":{"id":"3572471559159492","authorId":"3572471559159492","name":"Orangetrader","avatar":"https://static.tigerbbs.com/84aa79ac6f267248af43ec2f6380e55e","vip":1,"crmLevel":5,"crmLevelSwitch":1,"authorIdStr":"3572471559159492","idStr":"3572471559159492"},"htmlText":"?good advise","listText":"?good advise","text":"?good advise","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801653221","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801618710,"gmtCreate":1627514472430,"gmtModify":1703491307271,"author":{"id":"3567309024182924","authorId":"3567309024182924","name":"Merc8123","avatar":"https://static.tigerbbs.com/272ac8fc3161896715581d7053587a3f","vip":1,"crmLevel":8,"crmLevelSwitch":0,"authorIdStr":"3567309024182924","idStr":"3567309024182924"},"htmlText":"Good portfolio management advice. ?","listText":"Good portfolio management advice. ?","text":"Good portfolio management advice. ?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801618710","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801635796,"gmtCreate":1627514271715,"gmtModify":1703491296712,"author":{"id":"4087771643270940","authorId":"4087771643270940","name":"seojun","avatar":"https://static.tigerbbs.com/3bd9ce06b0a58d0a81582641f6566970","vip":1,"crmLevel":5,"crmLevelSwitch":0,"authorIdStr":"4087771643270940","idStr":"4087771643270940"},"htmlText":"Gasp i will do that","listText":"Gasp i will do that","text":"Gasp i will do that","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801635796","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801696877,"gmtCreate":1627513806299,"gmtModify":1703491278090,"author":{"id":"3581974691543530","authorId":"3581974691543530","name":"Cassjo","avatar":"https://static.tigerbbs.com/1e87388c6aea1be3c1691b78e8e7ee22","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3581974691543530","idStr":"3581974691543530"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801696877","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801690173,"gmtCreate":1627513597592,"gmtModify":1703491271137,"author":{"id":"3586131488444401","authorId":"3586131488444401","name":"STKG","avatar":"https://static.tigerbbs.com/730c2482b43ac1909a601868b378a6e4","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3586131488444401","idStr":"3586131488444401"},"htmlText":"Portfolio management is important.&nbsp;","listText":"Portfolio management is important.&nbsp;","text":"Portfolio management is important.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/801690173","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":801609148,"gmtCreate":1627513105284,"gmtModify":1703491258934,"author":{"id":"4088748055325860","authorId":"4088748055325860","name":"Kencom","avatar":"https://community-static.tradeup.com/news/bcaa9548fb78e0409a2827c590935dab","vip":1,"crmLevel":7,"crmLevelSwitch":1,"authorIdStr":"4088748055325860","idStr":"4088748055325860"},"htmlText":"Individual has to manage its ability to cope with losses; not speculate on the edge of the fence &amp; injure badly.&nbsp;","listText":"Individual has to manage its ability to cope with losses; not speculate on the edge of the fence &amp; injure badly.&nbsp;","text":"Individual has to manage its ability to cope with losses; not speculate on the edge of the fence & injure badly.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/801609148","repostId":2154918711,"repostType":4,"repost":{"id":"2154918711","pubTimestamp":1627462515,"share":"https://ttm.financial/m/news/2154918711?lang=&edition=fundamental","pubTime":"2021-07-28 16:55","market":"us","language":"en","title":"4 Ways to Silence Market Crash Fears and Safeguard Your Money","url":"https://stock-news.laohu8.com/highlight/detail?id=2154918711","media":"Motley Fool","summary":"You can't avoid a stock market crash, but you can prepare yourself for one and possibly limit your losses.","content":"<p>The thought of a stock market crash happening can be very scary for an investor. And while no <a href=\"https://laohu8.com/S/AONE.U\">one</a> can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.</p>\n<p>This very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c1ff5e1130a05e60f0959e0488117002\" tg-width=\"700\" tg-height=\"466\" width=\"100%\" height=\"auto\"><span>Image source: Getty Images.</span></p>\n<h2>1. Review your risk tolerances and asset allocation model</h2>\n<p>When you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.</p>\n<p>The table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8e70af3c789c62b5afab01a3b7ad6e32\" tg-width=\"1149\" tg-height=\"460\" width=\"100%\" height=\"auto\"><span>Data source: Vanguard Group.</span></p>\n<p>Part of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.</p>\n<p>So if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.</p>\n<h2>2. Rebalance your portfolio</h2>\n<p>As the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.</p>\n<p>In 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.</p>\n<p>Because the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.</p>\n<p>Rebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.</p>\n<h2>3. Revisit stock market crashes of the past</h2>\n<p>Even though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.</p>\n<p>But we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.</p>\n<p>What you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.</p>\n<h2>4. Get a long-term investing perspective</h2>\n<p>Even knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?</p>\n<p>Say, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.</p>\n<h2>Investor takeaway</h2>\n<p>Short-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Ways to Silence Market Crash Fears and Safeguard Your Money</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Ways to Silence Market Crash Fears and Safeguard Your Money\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-28 16:55 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.fool.com/investing/2021/07/27/ways-silence-market-crash-fears-safeguard-money/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2154918711","content_text":"The thought of a stock market crash happening can be very scary for an investor. And while no one can predict exactly when one will happen, you can rest assured that they do occur and they can't be avoided.\nThis very real potential investing threat could mean huge losses and a major hit to your hard-earned portfolio. But know that there are at least four ways to mitigate the situation and prepare for the eventuality and perhaps calm your fears and better manage your portfolio.\nImage source: Getty Images.\n1. Review your risk tolerances and asset allocation model\nWhen you invest, you should get rewarded for holding risky investments like stocks. That reward often comes in the form of earning a higher-than-average rate of return. But you should also understand that the riskier your holdings, the higher the extremes on that rate in both good years and bad years.\nThe table below, compiled by Vanguard, shows average annual returns between 1926 and 2000 among index funds using the asset allocation listed. It also shows the best one-year return rate for that model and the worst one-year return rate for the various asset allocation models. Note too that the number of years where a loss was reported increases as the allocation goes more toward 100% stocks.\nData source: Vanguard Group.\nPart of assessing your risk tolerances involves gauging your comfort level. You should examine how you feel about volatility but also make sure you can withstand all of the return rate scenarios that a particular asset class provides.\nSo if losing 43% of your wealth in a single year terrifies you, a portfolio made up of 100% stocks probably isn't a good fit. And a model with a slightly lower average rate of return but lower potential losses will probably make you more comfortable.\n2. Rebalance your portfolio\nAs the stock market does well or badly, your asset allocation model could shift over time. This could result in you being either too aggressive or conservative compared to the model you chose. As an example, let's say we have $100,000 invested with 70% stocks and 30% bonds at the start of 2008. That year was not a good one for stocks (darn you, Great Recession!), and the $70,000 wound up as $44,100 by the end of the year. Bonds did better, gaining a little over 5% and turning $30,000 into $31,572. So at the start of 2009, an unchanged portfolio would be 58% stocks and 42% bonds.\nIn 2009, stocks began their recovery from the Great Recession and did well. If you left your 2008 asset allocations alone (58% stocks/42% bonds), you would have seen a 17.87% return in 2009. That's a decent return. But if you adjusted your portfolio allocation back to 70% stocks/30% bonds, your return in 2009 would have been more like 20.35%. Using our hypothetical numbers, not rebalancing costs the hypothetical investor $1,877 in potential returns just in 2009.\nBecause the stock market has done so well over the last 13 years, your portfolio may have experienced the opposite situation from our scenario above. Now instead of your allocations becoming less risky, they could've become riskier (i.e. more invested in stocks). A rebalancing may be overdue.\nRebalancing basically means selling a portion of your stocks and buying bonds when the stock market does well. And you will sell bonds and buy stocks when stocks have had an off-year. Most investment advisors suggest doing this once a year, but if there is a year with a lot of volatility, you could end up doing it more often. The goal is to get your allocations back in line with your risk tolerance.\n3. Revisit stock market crashes of the past\nEven though stock market crashes will happen, they don't happen often. Technically one happens when there is a loss of 10% or more in a stock market index in a short period of time. And since 1929, that has only happened five times.\nBut we don't know when the next one could happen. It could be tomorrow, next week, next month, or next year. And there is no exact way of telling how many years you'll have between crashes. For example, after 1929, the next crash didn't come until 1987. But a crash happened in 2007, roughly six years after the dot-com crash ended in 2000. The stock market had mostly positive growth following the 2007-2009 Great Recession until 2020's pandemic-induced crash.\nWhat you can take from this information is that even though you'll probably endure at least one crash in your lifetime, you probably won't experience many. And if history repeats itself, you will probably get many more years of positive growth than negative.\n4. Get a long-term investing perspective\nEven knowing that crashes are relatively rare, you still need to answer some questions about how you are investing. What is the money for? Are you saving for a goal like your retirement that's 20 years or more out? And if so, how much of an impact will a stock market crash now have on you meeting your goal?\nSay, for instance, you lose 20% of your portfolio because of a crash but you don't need the money for 25 years. You'll have plenty of time to recover those lost funds. That would suggest you can be more aggressive with your asset allocation. But what if you'll need your money sooner? That's when you should rethink an aggressive asset allocation model. If you don't have enough time, you risk having to sell your stocks before they've recovered from a crash. Money that is needed over the next year or two should be kept out of the stock market completely.\nInvestor takeaway\nShort-term losses are a part of the investing process and often aren't worth avoiding. Instead of trying to time the market and stave them off completely, keeping these important lessons in mind can help you get through a stock market crash much easier.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":5362122,"gmtCreate":1627513352395,"gmtModify":1663231639836,"authorId":3583464201695264,"author":{"id":3583464201695264,"idStr":"3583464201695264","authorId":3583464201695264,"name":"aldeen","avatar":"https://static.tigerbbs.com/374dc3c8e6fc39c6b60650cf1b63d423","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801609148,"type":1,"supId":0,"prevId":0,"content":"True","text":"True","html":"True"},{"id":5362322,"gmtCreate":1627514232353,"gmtModify":1663231637649,"authorId":4088415017171770,"author":{"id":4088415017171770,"idStr":"4088415017171770","authorId":4088415017171770,"name":"PYEO","avatar":"https://static.tigerbbs.com/ffd529f4a692f5731760183a63c10858","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":801609148,"type":1,"supId":0,"prevId":0,"content":"Yes, like please.","text":"Yes, like please.","html":"Yes, like please."}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":274,"commentSize":49,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}