Why long-term investors shouldn’t fear a second market crash

A second stock market crash could be ahead. Risks such as political uncertainty in Europe and the US, coronavirus and an uncertain economic outlook may mean that investor sentiment weakens to some extent over the coming months.

This may cause paper losses for many investors. However, on a long-term view, it could prove to be a buying opportunity. Cheaper stock prices plus the recovery prospects for equity markets may mean that buying shares in a market downturn could prove to be a profitable move in the coming years.

Recovering from a stock market crash

The 2020 stock market crash was not the first time that indexes such as the FTSE 100 Index (INDEXFTSE: UKX) and S&P 500 Index (INDEXSP: .INX) had experienced a sudden downturn. In…