Dear Investor,
The new edition of How to Prepare for a Stock Market Crash: Tactics to Protect, Predict, and Profit, released by Damon Verial, is the most comprehensive resource available on protecting your portfolio against a recession. And if you think you’re already protected, think again. Here are 8 widespread myths about protecting your portfolio against a market crash:
- “But my portfolio is diversified.” Diversification doesn’t protect you against a market crash. A bear market lowers the tide, sinking all boats, except for one unique type of boat (aka stock).
- “Half of my portfolio is bonds.” That means half of your portfolio is also stocks or mutual funds. Because these latter two investment instruments have 3 times the volatility of bonds, your portfolio is not balanced! In fact, in this way, bonds only account for 25% of your portfolio protection, meaning that you could still lose 75% of your portfolio. Unless you want to dedicate 75% of your portfolio to bonds, you’re not “half protected,” and if you do, you’re not “half-exposed to the market.” What should you do?
- “A market crash won’t come during my lifetime.” Statistically, a market crash happens every 15 years. A bear market occurs even more often. And market corrections occur nearly every 4 months. If you’re not prepared for these events, your portfolio’s going to bite the dust.
- “I can’t predict a market crash, so why bother preparing?” You can predict a market crash. Several indicators, such as the Sharpe ratio, are correlated with market crashes. Learn them and you’ll know when to alter your portfolio for a more defensive mix.
- “I can sell and exit the market when a crash comes.” It’s called a crash for a reason; it happens suddenly. Besides, selling during a bear market is the worst thing you can do. As Damon explains in this course, people who sold stock when the market crashed in 2008 saw their portfolios perform 2/3rds worse than people who held on.
- “There’s no way to safely short stock in preparation for a market crash.” Damon will teach you a handful of safe strategies that can both hedge and profit during a market correction, bear market, or market crash.
- “All my stocks are value stocks, so I’m safe.” Value stocks don’t deserve to be hit by a market crash, but they still are. Even though KO will always have a consumer base, its stock will fall with the market because of its correlation with the market. Sad, but true. But Damon will show you how to choose a special type of stock that can actually make you safe during a crash.
- “I don’t want to dedicate half of my portfolio to short positions.” You don’t have to. You can still put the majority of your capital into long positions but hedge against a market crash. Damon explains how in “How to Prepare for a Stock Market Crash.”
Packed with first-rate advice from professional trader Damon Verial, “How to Prepare for a Stock Market Crash” gives you:
- The truth on the role gold plays during a bear market.
- Advice on predicting when the next bear market will hit.
- Tips on investing for the long-run despite market corrections.
- The best options strategies for preparing for a market crash.
- Instructions on how to properly short stock, if you choose to do so.
- The scoop on the best stocks to buy during a bear market
- The strategy for profiting off increased market volatility.
The truth is, no matter what type of investor you are, you can learn at least one new strategy from How to Prepare for a Stock Market Crash. It will help you make the most informed decision you can about where you invest your money. This completely updated edition of How to Prepare for a Stock Market Crash is now available through Damon’s site. To gain access to the course and the members-only discussion forums, click the button below.
