Saturday, October 13, 2018

The collapse of the stock market as the beginning of a new financial crisis. What's next?

Investors and politicians from different countries are excited about the crisis.

The collapse of the stock market as the beginning of a new financial crisis. What's next?


Such a combination of the most unfavorable factors has long been gone, and it is unlikely that the world economy will withstand the burden of accumulated problems.
While some people speak with fear about the approach of the crisis, others — more far-sighted-silently prepare for it.

Each of us can get hit by a new financial Apocalypse, lose their jobs and savings, be at the bottom of the financial pit:

How to behave at the peak of the crisis? What exactly should be done, how to minimize losses?


You and I, in a sense, are lucky-we don't need to reinvent the wheel.
We can use the experience of going through financial crises, which for several decades have tested the strength of the world economy.
To do this, it is enough to strictly observe several important rules for handling your finances and emotions.

Here they are:

1) Don't rush.


The main thing when you are faced with a crisis is to control yourself and not to panic:

It is unlikely that you will be able, being in the midst of the crisis, to predict — what investments will be the most disastrous and what the most sustainable.
You are likely to make a mistake and not one. But the loss and the loss of money should not frighten you — because "the tide reveals all the boats."
It's hard to keep your composure when everything that you have created for many years is collapsing before your eyes. But if you" built for centuries", then your investments are guaranteed to withstand the impact of the financial element.

2) Do not believe the forecasts.


In the midst of the crisis, the Internet and the media are overflowing with forecasts and assumptions of analysts and experts.

However, it is IMPOSSIBLE to understand what will actually happen next!

So don't waste your time reading these predictions.
Blindly trusting them, you risk losing a lot more money than because of the crisis itself.

3) Divide the investment.


"Don't put all your eggs in one basket!"

Make sure you have invested in different financial instruments and assets.
This will significantly reduce your risks, untie your hands and allow you to earn money while everyone around them lose.

4) Buy cheaper assets.


In a crisis, people will be forced to sell a lot of their property:

If you see a good growth potential of these assets after the end of the acute phase of the crisis — then feel free to buy them.
To do this, you must have a stock of cash ("cash" — is the most valuable asset in the crisis).
A little tip: if you lack your own savings, try to unite with other people.

5) Don't fuss.


Shifting money from one asset to another (for example, from the ruble to the dollar and back), you are likely to find yourself "in the red" because of the payment of fees for the transaction.

And finally, a few more tips on financially literate behavior:

Start small-invest small amounts each month (part of your salary).

Do not invest the last money!


Beware of the promise of high interest (free cheese only in a mousetrap-an incredible profit is given only by crooks and financial pyramids).
SUMMARY:

1. The crisis is not terrible to someone who knows exactly how to behave in difficult times.

2. A reasonable investment will make you a wealthy person. Financially illiterate behavior dooms you to endless problems and hassle.