The Time Machine: What’s the best way to protect ourselves against the next market crash?

By Patricia, February 14, 2015

If you had a time machine, and could go back to 2007, which stocks and other investments would you hold, buy, or sell? How about 1999, or even 1929? Do the best investments just prior to all market crashes have anything much in common?

How likely would your picks be to maintain, increase, or recover their value during and after the next crash?

Are you not worried, because you know you are invested in great companies, so can securely ride out a crash until the market resurges – which it always does? Do you see a drop like that as a good thing, because you can buy great stocks at bargain prices?
Or are you concerned enough to want to keep at least 10% of your investments in ”safe havens” – if so, what do you think the best ones are?

Do you think, like Travis does, that the next crash will be very different from the last one?

Do you think it is more likely to be caused by a cyclical panic sell-off, by bad government policies, by corrupt banking practices, by disruptions or shifts in the world monetary system, or some combination of these?

All thoughts, opinions, personal stories, and quotes from useful sources are welcome. Let’s share information, and learn from each other. Let’s figure out the best way to prepare, so we can have peace of mind and not be so fixated on financial and economic news that we don’t fully enjoy life.

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

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111 Comments on " The Time Machine: What’s the best way to protect ourselves against the next market crash?"

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optionski
Irregular
18

Just now becoming a new irregular, I have not read Travis’ comments concerning “…that the next crash will be very different from the last one.” Has he written how it will be different … longer, deeper, more swift … ?
Tim Wood, of cyclesman.com, would disagree with the basic statement. His research says that all have the same basic ‘DNA markers’ as a prelude to the crash.
Rick

Gr8Full!
Irregular
11249

From zacks, relevant to this thread if it works:
Consequences of the Stock Market Failing
http://finance.zacks.com/consequences-stock-market-failing-5834.html
Best2ALL!-Benjamin

arch1
Irregular
7744
That seems to be pretty much the standard view based on the last half of the 20th century.That said I feel it is a little too simplistic as we are now experiencing things that have never been seen before in the history of this nation and perhaps the world. I am not prepared to go to length here but the bank bailout [crony capitalism in my view} and the subsequent actions of a greatly politicized Fed. in bringing interest to essentially zero which has forced huge amounts of money into the stock market artificially pumping it up is readily seen.… Read more »
Alan Harris
Guest
0
Seems to me to be all a question of timing (what isnt?). I started trading straight after the 2007/8 crash and invested with Martin Weiss through something called The millionaire contrarian portfolio (spit!!). I was totally naive in those days. He advocated leveraged shorting of the $ and buying gold at $1800 per oz. As you can imagine, that hasnt worked out too well since then and it simply has to be the worst rated investment strategy on the net. But of course, had he been right, he’d have been beatified (a rare privileged for a Jewish guy 🙂 .… Read more »
Gr8Full!
Irregular
11249
Interesting Market Watch article- UPDATE: Why the U.S. stock market is one of the most dangerous in the world By Brett Arends, MarketWatch Some global markets are cheap by historic standards, but not here Which are the most dangerous markets to investors around the world? Which countries’ stock markets are most likely to blow up your retirement plan, your kids’ college funds, or your hopes of saving up enough to buy that yacht? If you think it’s markets such as Russia or Greece, or even China, you may want to think again. According to some fascinating research produced by Wellershoff… Read more »
arch1
Irregular
7744
The only completely sure way to not lose is to have nothing to lose. The problem with cash is that it can totally lose its value. Iraq ,Zimbabwe, Brazil.Chile,Argentina. Germany as some examples in just the last 100 years. Wealth preservation is usually best in having what people need and what people want. Often the want is more profitable than the need for the reason that your goods may be ” morally” stolen from you for the justification/ excuse that the need must be met. It is entirely possible to have a market crash and still have a good economy… Read more »