Market crashes are inevitable and they really hurt. So what should you do when there’s a crash? Make the best of it—here’s how.

1. Do Nothing During a Market Crash

2. Go Shopping During a Market Crash

A market crash creates opportunities, especially for savvy investors. You may be able to splurge on stocks and funds you’ve had your eyes on at steep discounts—or you can simply continue buying shares on your regular investing schedule.

The best place for novice investors to start is index funds, says New York-based certified public accountant (CPA) Paul Miller. “Buy them on a regular pattern, consistently. Then go to sleep at night,” he says.

3. Dollar-Cost Average, Even on the Way Down

When the market is in turmoil, the safest way to go on a buying spree is to dollar-cost average your purchases. That means making purchases of a set dollar value at regular intervals, even when the market looks scary.

Dollar-cost averaging smooths out ups and downs of your average purchase price, often lowering it over the long term. Spreading your buys out this way reduces your risk since you won’t be investing all of your money when the market is at a particular price point. Hopefully, that helps free you of that “what if the stock gets crushed tomorrow?’” fear.

4. Hunt for Dividends during a Stock Market Crash

5. Ride the Sector Rotation

A time-honored strategy for dealing with market downturns is to move money from one stock market sector to another. During times of high growth, for instance, tech stocks seem to do well. When the economy slows, meanwhile, “boring” sectors like utilities stocks tend to hold up better. So if you strategically move from one to the other, you may avoid large dips in one particular sector.

You can avoid this challenge and maintain solid returns by purchasing diversified index funds, which may do well no matter which way a particular sector goes. If you own all of the market to begin with, you’re already poised to benefit from any of its sectors’ growth, which can help prop up other sectors flailing in the short term. See our list of the best total stock market index funds for more ideas.

6. Buy Bonds during a Market Crash

Down markets are also a chance for investors to consider an area that novice investors might miss: Bond investing.

Government bonds are generally considered the safest investment, though they are decidedly unsexy and usually offer meager returns compared to stocks and even other bonds. Still, during times of uncertainty, holding some government bonds can make it easier to sleep at night, given their history of flawless repayment.

Generally, government bonds must be purchased from a broker, which can get pricey and complicated for many individual investors. Many retirement and investment accounts, however, offer bond funds that contain many denominations of government bonds.

Don’t just assume all bond funds are stocked with safe government bonds, though. Some also contain corporate bonds, which are riskier.

7. Cut Your Losses during a Crash (and Save on Taxes)

Despite our advice above, sometimes cutting your losses is the smartest investing move you can make.

Not only does it free up money that you can then invest differently, but, provided you’re investing in a taxable account, it also allows you to claim your losses on your taxes. This investing strategy, called tax-loss harvesting, lets you offset income with losses you realize, which may lower your tax bill.

It’s best to speak with a tax professional before you engage in this strategy to make sure you avoid what’s called a wash sale, which happens if you buy an investment that’s too similar to the one you sold at a loss. You may also consider having a robo-advisor manage your investments for you.

Note that the best robo-advisors already have tax-loss harvesting features built into them.

8. If You Are Retiring Soon, Tread More Carefully

Read More: https://www.forbes.com/advisor/investing/stock-market-crash/