Another stock market crash may be ahead. I’d take these 3 steps to get rich from it

first_img Peter Stephens | Wednesday, 1st July, 2020 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Peter Stephens Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares A number of risks currently face investors that could cause another market crash over the coming months. For example, there could be a second wave of coronavirus across many of the world’s major economies. There may also be rising trade tensions between the US and China that cause investor sentiment to weaken.Therefore, now could be the right time to focus your capital on high-quality shares that have a higher chance of surviving an economic downturn. Through taking a long-term view, and keeping some cash on hand, you could benefit from another stock market crash.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Holding cash in a market crashHaving some cash available during a market crash can be highly beneficial to long-term investors. It provides peace of mind so that you can pay for unexpected costs at a time when job security may be low. It also means that you are in a position to capitalise on lower valuations across the stock market.Clearly, holding large amounts of cash for the long term is unlikely to produce high returns. But, at a time when the prospects for the world economy are uncertain, ensuring you have liquidity within your portfolio could be a major advantage should stock prices become more attractive over the coming months.High-quality stocksHigh-quality businesses may be in a better position than their industry peers to survive another market crash. For example, companies with solid balance sheets that contain little amounts of debt may be under less pressure to deliver sales and profit growth on a relative basis. Likewise, companies with wide economic moats may be less affected by a period of weaker growth for the world economy.Furthermore, high-quality businesses may be able to take advantage of weak operating conditions to strengthen their competitive positions. For example, they may be able to take market share from their peers to improve their profit growth potential over the coming years. This could aid their share price performances, and boost your portfolio returns.A long-term viewA market crash can cause investors to panic about paper losses within their portfolio. However, a loss is not realised until a stock is sold. As such, holding your stocks for the long term could be a means of allowing them to recover from short-term declines in their valuations.Similarly, when buying stocks it could be a sound move to have modest expectations about their prospects over the short run. The challenging outlook for the economy means that many stocks may struggle to post improving levels of profitability. However, with the world economy and the stock market having strong track records of recovery over the long run, adopting a buy-and-hold strategy could allow you to benefit from improving performances over the coming years. Another stock market crash may be ahead. I’d take these 3 steps to get rich from itlast_img read more