When Facing a Stock Market Crash, Here's How to Still Make Money Is your investment strategy prepared for a big, sharp dip?

By Phil Town • Sep 7, 2018

Opinions expressed by Entrepreneur contributors are their own.

For Entrepreneur Network partner Phil Town, the next stock market crash may be coming soon.

Town is confident the next crash is on the horizon, since the current market is distinctly overpriced. High valuations are making it difficult to secure any margin of safety price. Town points out the last time prices were this high was in 1929.

From Town's perspective, at times making money with the stock market involves waiting patiently. Town observes that many investors are pouring money into the market due to a perceived strong state. Town opts for a more passive approach, choosing to sit back and see where his money takes him, instead of falling into the hype. Town recommends being a smart investor by staying on the sidelines, and looking for opportunties to follow the smart money.

A stock market crash does not necessarily have to be a bad thing either. If you invest in cash, a tactic Warren Buffet often uses, you may be able to avoid having your stocks plummet and see a big return afterwards.

Click the video to hear more from Town.

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Phil Town

Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

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