15 Investing Moves to Make if You Fear Another Stock Market Crash

Although just hearing the words "market crash" tends to inspire a mixture of fear and panic in many stock traders, the good news is that long-term investors don't have to lie awake at night fretting about the next downturn.

When you invest only in quality companies and stay invested in them for years, a crash shouldn't cause you to pull all your money out of the market or cash out holdings in great stocks that turn volatile for a time. If you do find yourself worrying about the next stock market crash, here are 15 key investing moves you should make instead.

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This reasoning is simple but true. Many of the most successful stock traders are those who keep buying great stocks in a variety of market conditions and regardless of short-lived patterns in the market.

Whether you prefer the style of growth investing, value investing, dividend investing, or a mixture of one or more of these strategies, outstanding companies that generate robust consumer demand, have a consistent track record of balance sheet growth, and are cash-rich businesses can help your portfolio sustain returns even when the market is wobbly.

ALSO READ: Instead of Panicking About a Market Crash, Do This

There’s no single correct way to allocate the assets in your investment portfolio, and the way in which you structure your holdings will likely depend on a range of factors including your personal financial goals and how close you are to retirement. Your appetite for risk is also a key factor to your asset-allocation strategy.

If you find yourself worried about how your portfolio might fare in the next market crash, it might be time to evaluate what areas are most likely to take a hit in the next downturn and where you can balance out those more volatile investments with safer stock buys.

Another way to gear up for the next market storm is to ensure you have a robust stash of cash set aside, both for emergency expenses that may arise and so you can take full advantage of the bevy of stock bargains that typically accompany a crash.

Industries and sectors that generate strong demand in a variety of economic circumstances and market conditions are chock-full of great investment opportunities that can help your portfolio weather the next storm.

On the other hand, sectors that tend to generate more discretionary levels of spending are often the hardest hit when the market takes a turn for the worse. For example, travel and retail are both industries that are typically more prone to headwinds in a market crash and periods of economic downturn. That doesn’t mean you should rush to sell all your cyclical stocks when the market is down or in anticipation of another market crash, but it may be wise to balance these investments with a healthy selection of noncyclical ones.

Noncyclical industries are those that generate constant consumer demand no matter what’s happening with the state of the market or economy because they provide the products and services that people consistently need and buy. Consumer staples stocks are one prime example. Healthcare stocks are another. A number of key emerging industries are proving to have noncyclical components that could also lend strength to your portfolio in the next downturn, such as e-commerce.

ALSO READ: These Growth Stocks Could Help You Beat a Market Crash

One easy way to get your portfolio ready for the next market crash is to ensure you’re invested in a broad selection of stocks, rather than just a couple of companies. When you have your money invested in an array of stocks, your portfolio is more likely to represent a far wider spectrum of the market.

This means that while some of your holdings might see extra volatility when the market is down, your lower-volatility investments can help to stabilize these movements.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

The best dividend stocks can help you build a market-beating portfolio and maximize your long-term gains while providing extra income in periods of market highs and lows. Companies with a solid track record of not only sustaining but increasing their dividends are usually the safest bet to have your money in when the market plunges and volatility strikes.

Sometimes, it’s tough to keep emotions out of the picture when the market takes a tumble or hits a particularly volatile note. But investment decisions arising from heightened emotional responses like fear or greed are unlikely to bring about optimal results for your portfolio.

Instead, focus on consistently buying shares of rock-solid companies primed for continual growth over a long period of time and that you intend to hold onto for many years to come.

ALSO READ: Don't Wait for a Market Crash to Buy This Value Stock

When you buy a stock and are committing to holding it for anywhere from three to five years to a decade or longer, it’s perfectly fine to take your time to get it right. No investment or investor is perfect, and every stock trader makes mistakes.

But in today’s market, where many stocks are historically expensive and some trading prices simply aren’t supported by underlying fundamentals, it’s more important than ever to invest in top-quality stocks that can provide long-term portfolio value. Take the time to get to know the companies you want to invest in, research their finances and core businesses, and stay up-to-date on developments that can impact the long-term durability of your investment.

And if you’re short on time to adequately research individual stocks, consider investments that instantly expand your portfolio’s access to various companies and broader swaths of the market without the need for the same level of legwork, such as index funds, exchange-traded funds (ETFs), and mutual funds.

Long-term investing is the single most important strategy you can implement to heighten your returns over years and build a portfolio that can withstand the regular ups and downs of the market.

There are several different types of long-term investing strategies, but the basic tenet of each of these approaches is to invest in excellent companies with strong businesses and hold them for extended periods of time as a means of building and sustaining financial wealth.

Your emergency fund should always be enough to cover several months’ worth of living expenses at least. Otherwise, if your emergency fund isn’t shored up and you find yourself in need of cash when the next downturn happens, you could be forced to dip into your portfolio and sell some of your stocks for less than your original buying price.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

While few investors look forward to the prospect of a stock market crash, changing your mindset about these periods in the market could serve both you and your portfolio well when the next downturn comes.

Market crashes are inevitable, and they will probably happen quite a few times throughout your investing journey. Although a crash can result in some serious portfolio volatility for a window of time, most of these downturns last no more than a matter of months and typically present great opportunities to buy stocks at incredible bargains.

ALSO READ: 1 Reason to Fear the Stock Market, and 3 Reasons Not To

If you don’t act based on panic and instead hold onto your stocks when the next crash occurs, you’re far more likely to see your portfolio recover from these short-term declines when the market rebounds, and you won’t actually have lost money.

When you diversify across different types of assets and industries, you can better control how much risk you introduce into your portfolio and distribute your investments in a manner that aligns with these preferences.

Remember, short-term share price fluctuations are normal, and even more so when the market is experiencing a correction or crash. Historically speaking, the market has gone up more than it’s gone down. Staying the course through a downturn is far more likely to work to your benefit than cashing out during a rough period and likely forfeiting future returns.

ALSO READ: This Stock Could Be Headed for a Crash

Your investing goals are personal to you, and they are likely to change as you get older and more experienced in your investing journey. Setting near-term and long-term investing goals for yourself will help you determine the best way to structure your portfolio and the types of stocks to invest in to generate portfolio profits in numerous market scenarios.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Market crashes and corrections are normal occurrences that typically happen every few years or so. The stock market is fairly repetitive, and unfortunately, investors can’t avoid the reality that market crashes can and will happen.

Investors who buy into quality companies and maintain positions in those companies for the long haul are far better positioned to weather challenging market times and enjoy sustained, fruitful returns than those who buy and sell stocks based on temporary conditions.

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