If a Stock Market Crash Is Coming, History Says Investors Who Make This Simple Move Will Come Out Ahead
In the event of a stock market crash, investors should avoid market timing strategies and simply buy the dip.
Overview
The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) have added 8% and 9%, respectively, this year. The driving force behind that upside has been surprisingly strong corporate earnings, especially within the technology sector.
Unfortunately, investors have reason to worry that both major indexes could drop sharply in the months ahead. Inflation tied to rising oil prices may force the Federal Reserve to raise interest rates, and midterm elections tend to make the market nervous.
Details
However, even if those major stock market indexes crash, history says investors who simply buy the dip will come out ahead in the long run. Here are the important details.
Source
Originally published at www.fool.com.