someone just commented on my last video that they think I'm really annoying and I'm just
like I am a really annoying person I am and I give up all these good information
in Nuggets like I hope you can overlook how annoying I can be I say all the time
my video is how annoying I am but it's not your problem essentially one day
someone's gonna have to marry me and deal with my annoyed behind the rest of
their life but you don't so let's just try to
overlook it yes I am an annoying person hi guys welcome back to my channel my
name is Kat Theo if you're new around here and today I'm gonna talk to you
about nine ways that you can prepare for a possible stock market crash so there
has been a tons of rumors going around in tons of speculations of people saying
that they will be a stock market crash maybe in 2019 going into 2020 so I
thought it'd be a really great idea to talk about how we can prepare for that
to be as best prepared as we can if there is a stock market crash let's get
into it
so first I do want to say that I'm not saying that there's gonna be stock
market crash I'm not saying to do anything this is pure entertainment none
of this is financial advice but that being said my first way is cash in team
so if there is a stock market crash you do not want to have most of your
investments in stocks because if the market were to crash then so would all
of your money you want things that are pretty liquid stock to know are pretty
liquid where you can cash out when you want but if right now you have $10,000
in the stocks and then looking at historical trends if there were to drop
thirteen percent you don't have $7,000 so you would want to have more cash on
hand because no matter what happens if there's another Great Depression or a
stock market crash we're still gonna be using dollars cash to trade goods and
services we're not gonna all of a sudden just start exchanging gold and precious
metals it's always gonna be cash so whether prices do go up at a grocery
store we're always gonna need cash however I'm not recommending you start
selling off all your stocks and just getting out of the stock market that's
something you're gonna have to decide on yourself and as we've seen or historical
trends shown that assets always are going up no
matter great depression suppressions bubble-poppin it's been a little blimp
in the time span of the whole stock market history but if you are close to
retirement and you're about to retire in the next 10 years or less this is
something it's you might want to be more aware about because you won't have as
much time to bounce back as somebody who is 26 years old for example okay my
second way to pair for a stock market crash is to get ahead of your bills I
personally recommend that you should try to get ahead of your bills for about six
months in advance so let's say you live in the middle of nowhere and cost of
living is really cheap and you only spend about a thousand dollars in total
a month for all of your necessities so your rent or mortgage your food your car
to get to work your gas everything is $1,000 I wish lord knows I wish so I you
would want to save at least six thousand dollars so if something were to ever
happen where you lose your job is across stock market crash people are being laid
off it's chaos it's just craziness you have at least six months to kind of have
a buffer period so you can figure out what you can do a side hustle it more or
whatever but six months is a good rule of thumb to be thinking about my third
way to prepare is when the stock market is going down a really horrible idea is
to try to be leveraging money in stocks you should never be leveraging other
people's money in stocks when is a downturn of the market so leveraging is
a really good way to make a lot of money very quickly but if you putting these
stocks on credit cards and you're not able to pay it back you can lose a lot
of money like a lot of money I've seen people lose $50,000 doing this some
people make a lot of money but a lot of people don't so if you don't know what
you're doing you should not be leveraging money in stocks especially
training when you if you're not really that well-versed niche it's not a good
idea only don't do it okay my fourth way is to not think or assume that the stock
market is your friend I know in general stock market has always gone up it
always will go up things now are gonna be cheaper than it will be in the future
but to assume that things won't get worse isn't really
and that it's just gonna go up soon or whatever it's just a really bad idea
you know I don't want to be a pessimist but you know when the last craft
I think the stocks dropped about 30% and now we have an even higher deficit we
have to do more debt the bubble is even bigger so what a lot of financial
advisors are saying that since the bubble is even bigger now than it was in
2008 2001 and then the Great Depression that it will explode even more and
stocks will go down even more so we're looking at it could don't know it could
drop as low as 60 50 60 percent of the stock value which is a lot more than
before and it's also a lot easier to recover from a 20% drop or a 30% drop
then it is from a 50 to 60 percent drop so just be wary of that okay my number 5
is not to be buying a lot of different stocks at once but instead to be buying
a little by little so I don't know if you guys remember in December when there
was like this little blimp when it stocks were going down everyone's like
oh my god the stock market crash it's coming and I remember I was like oh my
god it's starting and me being not that great with stock comes like oh my god
this is it this is the beginning it's gonna start going down it's like waited
and I was like okay it's gonna keep going down so I'm not gonna buy right
now I'm gonna wait until it goes like to oblivion and then I'm gonna start buying
because you buy low sell high well that didn't happen as you saw so in December
they went down and they went back up what you should do instead of trying to
do what I did trying to time out the stock market and try to buy a lot when
it's down really really low which no one can time it and said it would have been
a great idea for me to buy a little bit when it was down that much and then I
would have rode the wave up but you know I didn't do that so it's a good idea to
just buy a little bit of time for example with Tesla I'm a big Tesla fan I
love Tesla don't care what anybody says I think it's a great company but the
reality is there are like tens of billions dollars in debt like they you
don't have a lot of debt they do not have cash flow it's kind of a mess still
believe in them still believe in you Laurent bye anyways for example right
now it's the first time that has ever dropped below $200 so
in my opinion if you believe in Tesla this could be a great time to buy like a
little bit and then if it goes lower you buy a little bit more buy a little more
not saying to go by Tesla not saying to go sell Tesla just saying like it's
better to buy a little bit at a time instead of buying a ton and then it
drops until oblivion and then you're like damn I just lost a lot of money but
if you do it a little by little you can improve your position and just always
get a better deal but it obviously has to me with a stock and a company that
you really do believe it's gonna do better so for example if there is ever
stock market rock crash and Amazon goes down 40 50 percent this would be a great
buy because we all know Amazon's gonna be around to at least another 10 years
stay with Apple great company they're always innovating Google companies like
that right now they're kind of expensive but if I ever had a drop that would be a
great time to buy a little bit at a time until you have more of your position
okay number six is that any unexpected income should be saved and not spent so
sometimes if you have an actual good company work for and they give you
bonuses and like surprise money you never want to spend that if you are
trying to prepare for stock market crash you should just save it so if they give
you a little bit of extra money like Christmas it's coming up in like seven
months and they give you I don't know like two thousand dollars extra you know
you should just save that don't go out and buy more stuff for your kids sorry
kids don't go and get your hair done just save that money act like you never
got it so that money is just extra money for you if the stock market crashes okay
my seventh way is to expect things are gonna get worse before they get better
once again I do not want to be a pessimist but the reality is when the
economy's not good and if there is a crash things do get a lot worse before
they get better it can take years and years before the economy to get back to
where it was before and it's just a part of the cycle and it's not something we
need to be as scared of we just have to be prepared for it because we see these
cycles all the time and we are heading to
one of these cycles that should be going down but just expect things to get worse
before they get better number eight is something you can do
every day their lifestyle getting used to saying no to people when you know you
can't afford it so I have a problem with this I suffer
from extreme FOMO all the time I always wanted to do everything I want to go to
every event I want to go to every country I want to see everything it's
really bad even when I know I have money goals and it's like this year in
particular I want to save twenty thousand dollars halfway through the
year not looking too great but but being able to say no to things no I cannot go
to Applebee's with you no I cannot like get food late-night drinks whatever it's
just gonna really help you save more money so then if there is a stock market
crash you're ready you're ready number nine and I think this is actually really
important and I know it kind of sounds silly but practicing at least once a
week living in actual property in living like you actually are struggling I don't
want to sound pretentious or anything but traveling all over the world and
have lived all over the world poverty around the rest of the world is not like
the poverty here you know people making twenty or thirty thousand dollars a year
is nothing like the poverty in other countries you know where you're
literally living under a shack with no food market crashes to me really ugly
and if you're under 28 years old you probably haven't actually experienced a
real market crash because you were in high school still in 2008 at least you
should have been in high school if you're under 28 so we didn't really
experience looking for a job having to pay for a mortgage support kids and you
know all of this like you know you were a student you're you're a kid your
parents probably try to shelter you if your parents lost their job in this
moment honestly I don't remember anything my life changing at all cuz I
was a kid yeah going to cut your own hair for example is something you can
start doing learning that eating stale food is not the end of the world or for
dinner you just have like some vegetables like just that's it going to
the library for entertainment that's free and learning to enjoy the taste of
water for example poverty honestly in other countries are a lot worse than
they are in the United States but just be ready when companies are laying off
people in massive amounts of numbers and people are losing their job and it's
just chaos just be prepared that you might lose some luxuries that you have
there's a lot of like alarmist out there and extremist out like oh my god it's
not that big of a deal and maybe it's not but it's still it's just good to be
prepared because we don't know we've never lived through one of these and
they say that this is supposed to be worse than the other ones we shall see I
hope not I hope somehow we figure it out it just doesn't burst but I guess it
just has to right that's how the system works so anyways those are my nine ways
to prepare for a stock market crash please do let me know if you did live
through a stock market crash and you remember drastically how things change
please let us know in the comments what other things we should prepare for and
what other things you can do or a crash I know some people are like oh get tons
of bottled water and some people are like get a bunch of canned food but I
don't know let us know though we really appreciate it and I will see you in the
next video bye guys