Be prepared, be very prepared

About Latest Posts Dean Morel Latest posts by Dean Morel (see all) Don't let the ASX take your rights! – …

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I'm excited. Really, really excited! Value is starting to appear in the stock market and I want to buy buy buy. It's at time like these I take a deep breath and look at the big picture.

The GFC saw the S&P/ASX All Ordinaries Index 24% lower than Monday's close. Major banks like Australia & New Zealand Banking Group (ASX: ANZ) were 30% lower based on price to book. Those falls didn't happen overnight. During GFC1 the All Ords collapsed over five months, falling 26% from October to March. That was after the market had tumbled for a year from the peaks in 2007.

All ords PER long term chart

Source: Data – Colin Nicholson, chart Motley Fool Australia

Keep your eyes on the horizon and fuel in reserve.

For a more in-depth view on the current global crisis and what you should be doing, sign up for our free email, Take Stock.

Dean Morel is The Motley Fool's Investment Analyst. In the interests of full disclosure, Dean owns shares in Australian companies, but not ANZ. The Motley Fool's disclosure policy is as sane as they come.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »