Over the past two weeks, the market has plummeted by more than 600 points. It’s not hard to see why:
- A sitting President has been impeached.
- The Wuhan coronavirus is turning into a global public health emergency.
- And given that we’re experiencing the longest-running bull market in history, the market is susceptible to a major move to the downside.
So today, I want to show you how to weather the coming storm…
And most importantly, how to profit from it.
For the sake of argument, let’s assume the worst-case scenario:
First, let’s say Trump is impeached and is forced to leave office.
Regardless of what you think of Trump, this would send shockwaves through the markets. Uncertainty and volatility would be extreme, and stocks could plummet.
And secondly, if China can’t contain the Wuhan virus, panic could set in. People won’t feel safe going to restaurants, or traveling, or shopping for clothes.
No industry will be spared — and stocks wouldn’t be spared, either.
Your “Crash-Proof Portfolio” Battle Plan
If either of these two events happens, the Dow could drop to its 2019 level of 25,000.
Or it could potentially drop to its 2015 level, which could wipe out 40% of your portfolio.
But if both these events happen, the market could fall to 2009’s post-crash level. This would erase a decade of profits, and cut the value of your nest egg by more than 75%!
You’d have to rethink your retirement plans. You might even have to rethink retiring at all.
When faced with a situation like this, many investors panic. They sell off their holdings and put everything in cash. But that would be a big mistake.
You see, we’re about to show you a simple way not only to protect your portfolio…
But to earn extraordinary profits at the same time.
Step 1: Protect
The first step in this plan is to take a hard look at your current stock holdings.
Don’t touch your strong long-term investments. Strong companies will bounce back.
Instead, identify your weaker or more speculative holdings, and consider exiting those positions now — before a downturn hits.
Not only could this prevent future losses, but it’ll free up some cash.
And having some cash is an important part of the next step in building your “Crash-Proof Portfolio”…
Step 2: Profit
Now that you’ve trimmed your stock holdings and raised some cash, you’re ready for the second step of this plan: putting yourself in position to profit!
First, wait until the remaining stocks in your portfolio hit “rock bottom.” And when they do, you’re going to step in and buy more shares.
This way, when the market recovers, you’ll own your shares at a lower average price. So when you eventually cash out of these positions, you’ll earn bigger profits.
And second, you’re going to use some of your cash to diversify away from stocks. In other words, you’ll invest in assets whose performance is not tied to the market.
Specifically, you’ll make investments that can “zig” when the stock market “zags.”
Private Market Profits
For example, you could invest in early-stage private startups.
Research has shown that a diversified portfolio of startups can return 55% per year — regardless of what the stock market is doing.
At 55% per year, in about ten years, a $10,000 nest egg turns into more than $1 million.
Then, as Matt showed you yesterday, you can invest in private bonds and private real estate deals. If you know where to look, these investments can deliver double-digit yields — 10%, 12%, or even more — many of which pay out monthly cash.
In today’s world, good luck getting yields like that with REITs or public bonds.
And because these investments deliver such high returns, allocating even a small amount towards them can dramatically increase the profits of your entire portfolio.
Get Ready Now
This plan is simple, but many investors won’t take advantage of it.
That’s because, during a market downturn, emotions can overtake logic. And when that happens, investors make bad decisions.
For example, I remember talking with my parents after the 2009 crash. In just a few months, their portfolio had lost 60% of its value. It was an awful time.
I told them what I just told you: since prices were low, they should be buying more of their quality stocks. But in a panic, they sold everything and put their money in cash.
That’s why they missed out on the extraordinary gains of the past 10 years.
Don’t let that happen to you. Start looking at your portfolio now. Figure out what you should hold onto and what you should sell.
Decide on your plan before the market pulls back — and before your emotions get the better of you. That way, you can sleep well at night, and set yourself up for profits.
P.S. If you’d like some help identifying the safest and most profitable private market investments for your “Crash-Proof Portfolio,” we’re here for you.
In fact, as you’ll see here, we have a special invitation for you.
Essentially, it’s a way for you to get access to three of our most popular private market investing services, for LIFE. Click here now to learn more »
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