3 Reasons Not to Worry About a Stock Market Crash
Many investors are concerned that a downturn is bound to hit the stock market in the next year. Major stock indexes are near all-time highs, valuation ratios are above historical averages, and interest rates look set to rise, pulling capital away from stocks. There are certainly risks swirling around right now, but the right investment strategy will keep you from sweating a potential stock market crash.
This isn't the first time that investors have been worried about a crash. Sometimes, those concerns are warranted. The dot-com bubble and the global financial crisis were two incidents that some people saw coming, and it seems obvious that the stock market would tumble in both cases.
However, there have been plenty of times that threatening situations did not culminate in a market crash. The Eurozone crisis, a double-dip recession, and the "Taper Tantrum" made ugly headlines from 2010 through 2014. Investors were still licking their wounds following the 2008 market crash, and ominous signs made it seem that another steep drop was imminent.
Source Fool.com
