HOW TO INVEST AS MARKETS CRASH IN 2026
In a Nutshell
Invest in market dips like the anticipated 2026 crash by buying quality stocks (e.g., Microsoft at $381 with 5:1 risk-reward to $550 target, Mag 7 names) or ETFs (SPY, QQQ) in stages: 10-20% initially during rejection, adding on reversal confirmation to avoid averaging down. Airlines like Southwest offer rebound potential if oil drops, with strong fundamentals (P/E 43x, revenue growth). Historical recoveries (e.g., 2025 NASDAQ 25% drop rebounded 58%) show markets bounce back—use regulated brokers, aim for 3:1+ risk-reward, and start small with $100-1,000.
These notes were generated by AI and may contain inaccuracies.
The key question is: Is now a good time to invest, and how? When markets sell off, significant money can be made on recovery. As markets begin to sell off, better deals are available in companies, especially Mag 7 companies, than a few weeks ago.
No one can predict the market bottom. Markets do tend to recover based on history.
Early 2025 trade war: NASDAQ sold off from highs of 532 to lows of 400, a 25% correction, lasting about a month and a half, then recovered. From lows, it recovered 32% to previous highs and made new highs up 58% on QQQ or SPY. S&P 500 (SPY) offered 45% return, currently retracing.
Microsoft example during trade war early last year: Sold off 22% from highs to lows, then ran up 58% from support.
You won't catch the perfect bottom, but get invested in real companies you believe in that are making money, and add more once direction favors.
Focus on true companies: Microsoft sharp retracement; Apple decent downturn; Tesla (overvalued in opinion, 32% retracement from current lows, potential SpaceX IPO catalyst); Nvidia slight retracement; Google pullback, long way from last year's lows; Meta retesting previous lows, 30% upside to previous highs from current levels.
Investing $100 won't make you a millionaire, but for those not invested, get skin in the game with a plan.
Picking Individual Stocks
Pick one company like Microsoft: $2.84 trillion market cap, recent retracement. Investing Pro fair value price target $594 (23% upside from 53 analysts). P/E 23.8x earnings vs. Tesla 363x. Consistent revenue.
Get started with $100 or $1,000 while markets are down for positive returns to encourage continued investing.
If individual stock is hard, use SPY (S&P 500, top 500 companies) or QQQ (NASDAQ ETF, tech-focused, more volatile, higher risk/return, suitable for younger with higher risk tolerance).
Airlines hit hard by high oil prices (20-30% of expenses). Southwest best: Retested previous highs near $60/share, sold off but doing things differently. Investing Pro: $441 million net income, P/E 43x, net income growth expected (charging for baggage, share buybacks). Revenue increasing quarter-over-quarter vs. competitors. Wall Street prefers it: From lows $29 to highs $55.
American Airlines recovers but doesn't make new highs recently. JETS airline ETF.
If oil prices drop post-war, airlines rebound. Southwest attractive at fair deal, short-lived negative catalyst.
Use US-regulated brokerages like Weeble or Mumu (links in description). Avoid offshore.
Avoid going all-in (e.g., 100% of $1,000) on dip.
- Rejection stage (highest risk, markets selling off): Enter light, e.g., 10-20% ($100-200 of $1,000 goal).
- Once recovery signs: Breaks above average purchase price, higher highs/higher lows on larger timeframe, market sentiment improves.
- Add more when direction favorable, position profitable.
Example: Buy light at 375, tolerates low at 345, add when breaks above and confirms reversal.
Split entry based on conviction. Things can get worse before better. If drops 10-20% after light entry, easier to tolerate with cash ready to add on confirmation, not new lows (averaging down bad).
Use risk-to-reward calculator: Microsoft entry $381, profit target $550, stop $350 = 5:1 ratio (5% upside per 1% downside). For 10 shares ($3,800), potential +$1,600 / -$300.
Lay out best/worst case. Minimum 3:1 ratio (3% upside vs 1% downside), preferably 4:1 or 5:1 for less experienced. Allows being wrong more often but profitable.
Plan total risk vs. reward. Tool available in LPP team announcements.
Share companies considering. LPP team focuses on bull/bear cases, risk management, trade criteria. Link in description for live trading sessions.
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