Are You Ready For The Next Stock Market Crash?

It wasn’t normal.

In 2006, Floyd Landis stood on his pedals and left the world’s best Tour de France cyclists gasping in his wake.

I still remember watching it on television. It was as if the Pennsylvanian were shot from a cannon. In the modern era, most of the race’s stage victors win by seconds.

But that day, Floyd Landis gained more than six minutes. Not even Lance Armstrong, in his drug-fueled heyday, crushed his competitors by six minutes in a single day.

Floyd Landis soon stood on the podium as the overall winner. But a few days later, his titled was stripped because Landis tested positive for drugs.

According to Tyler Hamilton, co-author of The Secret Race, if a cyclist thought another rider was on intravenous rocket fuel, the riders never told the press.

But they shared their thoughts with one another in cryptic code. They might say, “His performance was extra-terrestrial.” Or they might say, “He was out of this world” or “That wasn’t normal.”

When it’s too good to be true…

Such is the case with the U.S. stock market.

Image by Pixabay 

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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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6 Responses

  1. Carlos says:

    Mr. Hallam, I really enjoyed Millionaire Teacher and made note of the asset allocation you mentioned; however, I also heard you on the Afford Anything podcast talking to the host about the idea of 100% stocks. If I was to go this route, since I’m 40 years old without any investments, would 60% VTSMX and 40% VGTSX be acceptable? I know I would have to remain consistent when the stock goes down.

  2. Jen says:

    I am scared. Why: my contract job ends soon–and what if don’t have money to continuing buying every month–and the stock markets falls for years and years!

  3. Barry says:

    Re-Balancing regularly with new funds or take some profits off the table now?

    • Hi Barry,

      Just focus on one thing: your goal allocation compared to your current allocation. If you can rebalance by purchasing only, then go for it. If that isn’t working, by year-end, sell some of the overweight category and add the proceeds to the underweight category.


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