how I’d prepare for the next market sell-off // Motley Fool Australia

The prospect of a second stock market crash appears to be relatively high at the present time. Risks such as the ongoing coronavirus pandemic and a weak economic outlook have the potential to cause investor sentiment to decline.

Although a market slump is not guaranteed, preparing for it now could be a sound move. After all, the stock market has never made gains without experiencing declines along the way.

Through identifying high-quality companies to buy in a market decline and reassessing current holdings, an investor could put themselves in a good position to capitalise on lower stock prices in future.

Reassessing current holdings ahead of a stock market crash

A stock market crash often coincides with a weak economic outlook….