Understanding Stock Market Volatility and Recession Strategies

What are some of the factors contributing to the current stock market volatility?

• Low interest rates

• Strong consumer confidence

• Trade wars and tariffs

• Stable inflation

Which historical event is known for the largest one-day percentage drop in the Dow Jones Industrial Average?

• The 2008 financial crisis

• The dot-com bubble

• Black Monday

• The Great Depression

What is the main benefit of using Rocket Money as mentioned in the video?

• Investing in stocks

• Tracking and managing subscriptions

• Predicting market trends

• Calculating interest rates

What is the key strategy to avoid losing gains in the stock market according to the video?

• Timing the market

• Staying invested during big days

• Selling during downturns

• Investing in real estate

What is dollar cost averaging?

• Buying only high-performing stocks

• Selling stocks during a downturn

• Investing a fixed amount regularly

• Investing a lump sum at once

In the dollar cost averaging example, what was the outcome of investing in a volatile stock?

• A loss of $1,000

• A profit of $1,860

• No change in investment value

• A profit of $1,320

What is one of the recommended actions to prepare financially for a recession?

• Ignoring market trends

• Investing all savings in stocks

• Building an emergency fund

• Selling all investments

Why is it important not to panic sell during a market downturn?

• It increases market volatility

• It guarantees immediate profits

• It prevents long-term recovery

• History shows markets eventually recover

What should investors look for during a market downturn according to the video?

• Opportunities to withdraw all funds

• Opportunities to sell high

• Opportunities to buy undervalued stocks

• Opportunities to invest in real estate

What is the main message of the video regarding market downturns and volatility?

• They are permanent and should be avoided

• They are normal and part of the economic cycle

• They are unpredictable and should be feared

• They are rare and unlikely to happen again