Why Most People Should Hope For Stocks To Crash!

crash

Stocks have been jittery. 

You might be worried about crashing oil prices and the problems in China.  And perhaps you should be worried.

But let me ask one question:

  1.    Will you be working for the next five years?

 If you answer no, you might be retired.  In this case, a stock market crash should concern you.

But if you answer yes, and you fear falling markets, you’ve let your heart and the media hijack your logic.  This isn’t some rebellious call to the fruity side of life.  It’s what Warren Buffett, himself, has suggested many times.

To understand more, check out my August 2015 article, Why Americans Should Hope For A Stock Market Crash.

And remember…this train of thought isn’t just for Americans.


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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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5 Responses

  1. Cam B says:

    Great timing with this re-sharing this article Andrew – I came by your site to see if you had any updates or insight given the first few weeks in 2016. Never have I seen so much news/opinions/panic on markets and other factors like oil price and Canadian dollar.

    Time to re-balance the e-Series portfolio and hope that the “sale” continues. Thanks again.

  2. Sam Beesley says:

    Hi Andrew, after some consideration of the “impending” stock market crash, yesterday I made my first investments with TD International. I’m 29 years old.

    VWRL 12,000 GBP
    Ishares SAAA 4000 GBP

    If there were a crash in 2016 I would conservatively estimate I would have about 2000 GBP in cash to invest immediately in that instance and I’m worried I might not have the means to buy a huge amount of stocks during a crash to re-balance my portfolio.
    What would you recommend I do in the event of a crash assuming I have little free cash? Sell all my bonds to buy stocks then gradually buy bonds back later? Thank you for your help. Sam.

    • Hi Sam,

      I don’t recommend that you speculate. Just build a diversified portfolio of ETFs. Rebalance it once a year (if required). Keep adding money, every month of every year. That’s it. It doesn’t sound sophisticated. But it’s the smart approach.

      Cheers,
      Andrew

  3. Jerry says:

    Hi Andrew,

    In creating a balanced portfolio, how would you treat the contributions to a employee share ownership plan set up with an employer?

    Thanks!


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