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decision that some great investors like by John F Kennedy's father took before the crash. They paid attention on the signals of the Federal Reserve and saw that the market was overheated and sold their stocks before. Of course it is not always easy to know if a market crash will happen in the near future but selling a part of your investment in stocks if the market is overvalued is often a good decision.

Also some political reasons like a war which is approaching (by example the war of Iraq) is a good reason to sell stocks. People who took this decision and invested back when the stock market was starting to rise have reached a good return during several years.

Surviving a market crash is not difficult but some knowledge of the stock market is necessary. Investing on a regularly basis is the key to success and a stock market crash will never have a dramatic influence on the long term. The only important discussion can be: do I invest in stocks or mutual funds which invest in stocks. The answer is a little bit personal and depends on the amount of the money you can afford to use for investments. Maybe investing in stocks can give you a higher return if you pick the right stocks but if you want to limit the risk of some bankrupts mutual funds are a better choice.

Following the basics of a good investment strategy is the key to survive every market crash!

Learn more about this author, Erik Van Tongerloo.
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