http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession How to Minimize Your Investment Losses in the Next Recession The current volatility in the US stock market is reminiscent of the days preceding both the dot com crash and the 2008 market crash that ushered in the Great Recession. It may well be time to consider how to minimize your investment losses in the next recession. The 2008 crash destroyed about $7 trillion in equity value. A crash today might destroy as much as $20 trillion in equity value according to Investopedia. The recent stock market retreat, which has sent the S&P 500 Index (SPX) down by 5.9% from its intraday high on Oct. 3, has intensified the debate between the bulls and the bears. Outspoken economist, hedge fund manager and market analyst John Hussman is renewing his prediction of a severe market crash that would send major U.S. stock market indices plummeting by 60% or more. He has been warning that stock valuations have been extreme for years, and long overdue for a return to historical norms. Putting this in dollar terms, Hussman recently said that the crash will wipe out $20 trillion of stock market value, Business Insider reports. Timing a market correction is always difficult. Bears have been predicting this bull market’s demise for years! But all good things do come to an end and that includes rising stock market prices. Steps to Take to Minimizes Losses when the Market Tanks Investopedia offers advice from JPMorgan on how to avoid losses in the next recession.

1. HOW TO MINIMIZE YOUR
INVESTMENT LOSSES IN
THE NEXT RECESSION
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
The current volatility in the US stock market
is reminiscent of the days preceding both
the dot com crash and the 2008 market
crash that ushered in the Great Recession.

3. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
It may well be time to consider how to
minimize your investment losses in the next
recession.

4. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
The 2008 crash destroyed about $7 trillion
in equity value.

5. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
A crash today might destroy as much
as $20 trillion in equity value according
to Investopedia.

6. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
The recent stock market retreat, which has
sent the S&P 500 Index (SPX) down by
5.9% from its intraday high on Oct. 3, has
intensified the debate between the bulls and
the bears.

7. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Outspoken economist, hedge fund manager
and market analyst John Hussman is
renewing his prediction of a severe market
crash that would send major U.S. stock
market indices plummeting by 60% or more.

8. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
He has been warning that stock valuations
have been extreme for years, and long
overdue for a return to historical norms.

9. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Putting this in dollar terms, Hussman
recently said that the crash will wipe out $20
trillion of stock market value, Business
Insider reports.

10. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Timing a market correction is always
difficult.

11. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Bears have been predicting this bull
market’s demise for years!

12. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
But all good things do come to an end and
that includes rising stock market prices.

13. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Steps to Take to Minimizes
Losses when the Market
Tanks

14. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Investopedia offers advice from JPMorgan
on how to avoid losses in the next
recession.

15. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
They suggest that bonds will start
outperforming stocks as much as a year
before the market actually crashes.

16. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Rotating some of your profits out of stocks
into bonds is their recommendation.

17. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Cyclical stocks will take more of a hit than
defensive stocks when the market heads
south.

18. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Their suggestion is to start moving money
out of some of your recent cyclical stock
winners into long term growth stocks.

19. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Growth stock prices are based on their
earnings.

20. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
When earnings drop off the stocks without a
margin of safety will fall more rapidly than
the general market.

21. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
These folks suggest moving out of growth
stocks and starting to buy value stocks.

22. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
And, things will get worse in developing
markets, especially those economies
afflicted by the “resource curse.”

23. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Is This the Time to Buy
Gold?

24. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Investing in gold can be profitable if you
pick and choose carefully when to buy and
when to sell. We wrote about this in 2010.

25. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
There are a number of attractive options for
investing in gold and there are pitfalls.

26. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Gold stock investing includes mining
companies and derivatives.

27. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Many gold bugs will say that how to invest
in the stock market during hard economic
times is to invest in gold.

28. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
However, the true gold bug will advise that
you buy and hoard gold bullion or rare gold
coins.

29. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
When we wrote this, gold was trading at
about $1,400 an ounce.

30. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
It rose for a couple of years to trade briefly
in the $1,900 range before falling.

31. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Today gold trades at about $1,200 an
ounce.

32. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
The best time to buy gold was in the early
1970s during a period of historic inflation
brought on by new social spending and the
war in Vietnam.

33. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
The next best time was in 2000 when
interest rates plummeted and war raged in
the Middle East.

34. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
In each case, the price of gold steadily rose
until economic conditions improved and it
became contra productive to hold an asset
that has quit appreciating and did not pay
dividends or interest.

35. http://profitableinvestingtips.com/bond-investing/how-to-minimize-your-investment-losses-in-the-next-recession
Now, however, might be a good time to
balance your investment portfolio with a
gold ETF or mining stock with the
understanding that you will hold the
investment for a few years and then rotate
back to equities, bonds, or even cash.