3 Mistakes to Avoid if the Stock Market Crashes in 2025
In the two-year period between 2023 and the end of last year, the S&P 500 (SNPINDEX: ^GSPC) rocketed 53.2% higher while the Nasdaq Composite (NASDAQINDEX: ^IXIC) surged a mind-numbing 84.5%. So heading into 2025, some investors may have already been concerned that valuations had gotten ahead of fundamentals.Both indexes are in the red year to date, with the Nasdaq down over 9% from its 52-week high. The sell-off is still a long ways away from a full-blown market crash, which is defined as a rapid decline of 20% or more. But given the Nasdaq reached an all-time high in December and nearly surpassed that all-time high just a few weeks ago, the term "crash" would certainly apply if the Nasdaq sold off another 10% or so in a short period of time.No one knows if a crash is on the way or if the market will be back to making new highs before we know it. However, there are actions you can take, and mistakes to avoid, if the market does crash. Here are three critical mistakes that you can learn to avoid making the easy way.Continue reading
In the two-year period between 2023 and the end of last year, the S&P 500 (SNPINDEX: ^GSPC) rocketed 53.2% higher while the Nasdaq Composite (NASDAQINDEX: ^IXIC) surged a mind-numbing 84.5%. So heading into 2025, some investors may have already been concerned that valuations had gotten ahead of fundamentals.
Both indexes are in the red year to date, with the Nasdaq down over 9% from its 52-week high. The sell-off is still a long ways away from a full-blown market crash, which is defined as a rapid decline of 20% or more. But given the Nasdaq reached an all-time high in December and nearly surpassed that all-time high just a few weeks ago, the term "crash" would certainly apply if the Nasdaq sold off another 10% or so in a short period of time.
No one knows if a crash is on the way or if the market will be back to making new highs before we know it. However, there are actions you can take, and mistakes to avoid, if the market does crash. Here are three critical mistakes that you can learn to avoid making the easy way.
