Market crashes 20%, what do you do?

Amazon / Eng KHCr70
Oct 9 35 Comments

Hypothetical situation:
Due to several triggers, next Monday morning all the major stock markets tank ~20% by noon EST. Down 5% more by market close. (For whatever reason you are unable to take any action before EOD)

"Several triggers" = some bad combination of events of both geopolitical (uncertain future), and institutional (ex American bank collapse), which results in several secondary system failures.

You set your alarm for Tuesday morning 8:45 EST. What do you do? (News @ 8am shows no new developments)

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TOP 35 Comments
  • Bloomberg / Eng maccas
    Cry and then go to work
    Oct 9 0
  • Microsoft jugaloo
    The correct answer isnt a selection. Keep dollar cost averaging into the market.
    Oct 9 2
    • Twitch / Cust. Srv. dreamful
      Not sure if you would do that right before a 2008 event though. You could make a lot more by waiting a few extra months and waiting for good stocks to sell at a discount, and then just buy and forget for the next 10 years.
      Oct 9
    • Microsoft jugaloo
      Since I don't know enough to time the market, I dollar cost average in.
      Oct 9
  • Panasonic Avionics Pac23Futur
    If wallstreetbets taught you anything, BTFD.
    Oct 9 1
    • Twitch / Cust. Srv. dreamful
      No, reddit wsb taught me one thing only. Which is yolo420, trade out of the money options expiring next week till rich or die trying
      Oct 9
  • Facebook ⭕w⭕
    🌭✊
    Oct 9 0
  • Microsoft iamletired
    Not possible, even in theory. Markets have plunge protection short circuits. The markets will close well before the market drops that much.
    Oct 9 0
  • Booking.com kYu6u5
    HODL
    Oct 9 0
  • Microsoft hackerx
    Buy put options!
    Oct 9 3
    • Bloomberg / Eng maccas
      IV will be through the roof already so you won’t profit unless there’s another huge nosedive.
      Oct 9
    • Microsoft hackerx
      Then sell call options
      Oct 9
    • Amazon n1Uwbwo0
      Once you do that, stocks will skyrocket
      Oct 9
  • 🇹🇼🇭🇰
    Oct 9 1
    • Microsoft hackerx
      🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸 Only!
      Oct 9
  • Microsoft / Consultant micrusade1
    Oct 9 0
  • Amazon Dr. Jones
    Cash out my put options and go on vacation 💰
    Oct 9 0
  • Facebook
    zucky

    Facebook

    PRE
    Apple
    zuckymore
    Just hold. Never in history we didn’t recover
    Oct 9 2
    • Microsoft hackerx
      Lots of companies went bankrupt in history and the stock value went to 0
      Oct 9
    • Facebook
      zucky

      Facebook

      PRE
      Apple
      zuckymore
      Invest in funds, never in individual companies
      Oct 10
  • eBay ndjh194Hq
    Post a poll in blind 🤷🏻‍♂️
    Oct 9 2
  • Capital One / Finance Rexxar
    Everyone who says buy either 1) has far too much money sitting in cash, or 2) is stupid. Here’s why... You shouldn’t have anymore more than an emergency fund and maybe once months spending in cash, and you shouldn’t spend your emergency fund on stocks immediately after a collapse.
    Oct 9 2
    • OpenTable Meliodas
      Says the debt finance company. People should have as much cash as they feel comfortable with.
      Oct 9
    • Capital One / Finance Rexxar
      That would still make them stupid financially speaking. They would almost certainly time the market poorly, lose a ton of money, and become socialist. It’s already happening all over California.
      Oct 9
  • Facebook / Eng
    .👁️

    Facebook Eng

    PRE
    Facebook, Google, Snapchat
    .👁️more
    Oct 9 1
  • Gen!x / Eng
    ixptl12

    Gen!x Eng

    PRE
    startups, JPMorgan Chase
    BIO
    ¯\_(ツ)_/¯
    ixptl12more
    Lose 20% of invested assets
    Oct 12 0
  • Microsoft xIdC37
    Move to the fallout bunker and hope for the best
    Oct 9 0
  • Amazon FQNx33
    Rebalance to reach by desired allocation ratios. In this case, I'd be selling bonds to buy stocks.
    Oct 9 0
  • Facebook / Eng
    .👁️

    Facebook Eng

    PRE
    Facebook, Google, Snapchat
    .👁️more
    I know what not to do: sell.
    Oct 9 0
  • Splunk phzoran
    Post in blind?
    Oct 9 0
  • OpenTable Meliodas
    It would depend on the event. If there is a systemic bank collapse, then the markets won’t be functioning.
    Oct 9 0

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