alt Hacker NewsIf one were to think a major stock market crash was coming up, led by the AI bubble bursting, but reinforced by the major self-own that is the Iran war, how would one best prepare ones investments?
Replies
Other than buying oil futures, probably selling to cash and getting ready to buy when it hits the fan.
Either you need the cash now and are already in short-term treasuries or you're it it for the long-term and you'll be laughing at this question when the Dow hits 100k.
Dunno, but yesterday was the first time ever I felt confident shorting nearly across the board. Nearly.
If everyone (most people) think the same, shouldn't you do the opposite?
Be fearful when others are greedy, and greedy when others are fearful. Etc.
The advice I have heard is if you think there will be a significant drop in the market you liquidate all your holdings while they are still high and then rebuy when the price is low. Granted this is a gamble though, if you’re wrong then you just sold all your stock and are no longer participating in the market plus you need to pay capital gains tax
I think a crash is coming and I do nothing. I rebalance my stock/bond split and keep a large emergency fund as per usual.
https://www.lynalden.com/march-2026-newsletter/ (control-f “The Investment Implications of Chaos”)
Not investing advice, I’ve reallocated away from US domestic equities to international equities (VXUS) as a majority of a portfolio. This hedges against a correction from overweight Mag 7 exposure and US economic growth impairment from current policies (imho).
https://www.axios.com/2026/03/27/stocks-trump-iran-nasdaq
https://totalrealreturns.com/n/VTI,VXUS?start=2025-01-20
https://www.apolloacademy.com/sp-500-concentration-approachi...
You can go all cash so not risking leverage via shorts, etc. But a lot of folks think that's dumb. I feel better being in cash right now as the mental stress of big loses in middle age is not worth the missed gains if I'm wrong. To each their own.
One should either weather out the storm or if one wants to cash out soon or manage their portfolio more closely they would pick the defensive assets they trust the most and hold until they stop thinking the stock market crash is coming up or stop trusting those assets. If they really think the crash is imminent, maybe investing some excess money into shorting the market while setting trailing stop loss would be a fun activity that might turn profitable