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Best investments to survive a stock market crash

By Christy Bella | December 14, 2021

Table of Contents

When markets plummet quickly and unexpectedly, every investor will experience a stock market crash at some point in their life. To help you weather the stormy conditions, you need to identify the best spread betting platform uk to get guidance on spreading your capital. Some investments that you can spread your cash include:

Best investments to survive a stock market crash

Treasury bonds

Treasury bonds are incredibly safe and steady investments. The U.S government has vowed to pay out on its debt, so you know that your money is protected if anything happens in America or around the world. They are a good choice for stability, but they may not be enough when inflation gets too high. Other types of government-backed debt like I Bond or TIPS (Treasury Inflation-Protected Securities) could offer better rates during periods with low interest and high prices because the government guarantees protection against losing money due to rising costs.

Corporate bond funds

Corporate bonds are a great way to invest in cryptocurrency or other stock markets with the security of government-issued debt but offer slightly more risk. Many people are nervous about investing their money, but corporate bonds can be a great way to invest in stock trading without all of these risks. They work like government-issued Treasury bills and offer investors good returns with minimal risk while providing an incentive for companies they fund to grow.

The Bloomberg U.S Corporate Bond Index fund (SPBO) provides steady and solid returns, with an average three-year trailing return of 8%. This index has delivered positive growth even during the Covid – 19 pandemic, which is why it’s a great choice for investors who need stability. The long-term performance falls off significantly when stretched out over five or ten years; however, there are still opportunities available today due to how low these rates can go.

Money market funds

Money market funds are the safest, most reliable way to invest your money. They’re ultra low risk and have short maturity periods, so events in this world won’t impact them. The money market fund is a great place to store your cash when you need it, but the returns on these funds aren’t near what investors would be comfortable with. Even though they yield less than 1% overall (and even at 0%), some offer better rates.

Gold

The resilience of gold to market turmoil is a major reason why it’s so popular among investors. The metal typically increases in value when the markets struggle, and its value will often rise as much or more than 100%. Gold has indeed gone up just about 9,000%. Not bad by any means—until you look at how much the Dow Jones Industrial Average (DJIA) grew over 60k percent in return! If your goal is to invest in stocks wisely with gold, you will need safety features such as insurance and storage.

Real estate investments trusts (REITs)

It is often said that REITs are a good hedge against the stock market. This may be true, but they also offer higher dividends than many other investments. This makes them an even better choice for those looking to invest their money wisely. REITs are risk-free but also vulnerable to fluctuations in their respective industries. The volatility that REITS experience isn’t as severe because it is more related to what’s happening with companies rather than a general market trend.

Total market index funds

It might not seem intuitive but if you continue investing in the stock market during a crash it will be good for your portfolio. Dollar-cost averaging depends on you holding onto what’s already been bought, even if things get rough. By buying more shares when prices are low, you can lower the overall cost of your investment. This protects against an inevitable recovery and allows for growth in stocks over time as they recover from a decline. Whisky cask investment has gained popularity in recent years as an alternative asset class. With its rich history, limited supply, and increasing demand from collectors and enthusiasts, whisky has proven to be an attractive investment option. Investors often look for rare and highly sought-after bottles, limited editions, and whiskies from renowned distilleries, as these tend to appreciate in value over time. As with any investment, there are risks involved, but for those who are passionate about whisky and have a long-term perspective, it can potentially offer both financial returns and the enjoyment of owning exceptional spirits.