In this episode of The Australian Investors Podcast analyst Owen Rask and 7Investing adviser Dr Anirban Mahanti explain what to do when the ASX or any stock market crashes.
What was answered:
- How often do stock markets crash?
- About once a year, on average, you might expect it to fall/correct 10% (depending on the market)
- Only 20% of market corrections (i.e. 10% falls) turn into bear markets (see Tony Robbins, Unshakeable)
- Which stocks are best to buy cheap?
- High quality growing stocks (or whatever fits your investment checklist)
Owen’s quick & easy market crash checklist (to get you started)
Owen looks for these 5 things when the market falls:
- Net cash position
- DBNR (see explainer below)
- Aligned management
- Controllable costs (i.e. strong margins)
- Strong growth prospects over 5-10 years
Related video: watch 7Investing’s Dr Anirban Mahanti explain SaaS metrics
Like money? Subscribe today and get weekly stock ideas
The Australian Investors Podcast is one of Australia’s top investor podcasts, as ranked by Apple Podcasts & Spotify, focused on investing in ASX & global markets.
When you subscribe to the podcast on Apple Podcasts, Spotify, YouTube or Castbox you’ll get weekly insights on ASX & global shares, funds, ETFs and more. Let Owen be your field guide to investing profitable for decades to come.
Why on earth would I bother listening to this episode?
The Australian Investors Podcast brings together Australia’s best investors. Weekly episodes by investors, for investors.
In this episode, Owen and Anirban give you a game plan to survive and thrive in the next market crash. Yep, that’s right, by the end of this episode you might actually be looking forward to the next market crash because you’ll have the tools, knowledge and conviction to back yourself.
Like video? We got you…
Watch the video on the Rask Australia YouTube page.
Save $100 on 7Investing annual memberships
Join 7Investing before 7th January 2022 & save $100 with the “HOLIDAY” coupon code (plus save $100 every year you remain a member!)
Like it? Love it? Hate it? Tell me about it…
If you like The Australian Investors Podcast, say g’day to Owen and Anirban on Twitter. We’d like to get your suggestions for future episodes.
~~ A note for transparency: we receive nothing ~~
Rask (our business) nor Owen do not receive anything if/when you use the coupon code. We teamed up with 7investing simply because we like the 7investing investment philosophy, style and service. It’s easy to navigate, rich with insights from investors like Anirban and… run by Simon Erickson.
To join, simply apply the coupon ‘RASK‘ on the checkout page.
Want more of Rask’s best investment ideas? Please, right this way…
To get 6 months of Owen and the Rask analyst team’s ASX research, join Rask Invest.
Listeners who want access to high conviction ASX share research, plus ETF models can get $100 off a Rask Invest membership using the discount code “investpod“. Join today and access exclusive insights.
“The best part was the disclaimer” – said no-one ever
This information warning is actually important (that’s why we write it in the same size font… unlike our competitors).
This podcast contains general financial advice only, issued by The Rask Group Pty Ltd. This information does not take into account your needs, goals, or objectives. So please consult a licensed and trusted financial adviser before acting on the information. Investing in risky and can result in capital loss. Nothing in this podcast should be considered as a forecast or guarantee of future returns. Please read Rask Australia’s Financial Services Guide (FSG) available on our website to learn more about us, what we offer and our podcasts.
Date of recording: December 22nd, 2021