So is the biggest crash in history coming this year. If so, hang on, this might be an opportunity to create generational wealth for those who will manage it correctly. Let's talk about it. Thank you for staying and look.

Every investor knows they live with the risk of a stock market crash. It happened before it will happen again and if you're not prepared, it will likely wipe out your entire life savings in the heartbeat. Fortunately, there are strategies to protect your portfolio from a crash using a few simple steps and, as always like everything in life, timing and preparation, is everything. So the sooner you start building your defense and offense vis-a-vis, this crash, the better it would function as a shield from whatever it is, that's coming down the pipeline and throughout history we heard people saying again and again this time, it's different before every single crash we Had the dot-com bubble, where people said that this time it's different because it's the internet and it changed everything.

The same thing happened in 2008, where people told you this time is real. It cannot happen, it's real estate. How can it crash - and there is no way it's gon na collapse like the dot-com bubble and, as you now know, things did not work out this well, in fact, things weren't different. They were identical both times the market crashed violently.

Both arguments were wrong and the crashes did happen were extremely painful now. The one thing we can learn from the past is that there is very clear structure to these crash scenarios. High retail participation strong belief that this time, things are different, whether it's the internet, the real estate market or the technology, innovation and disruption, following a spark that ignites this whole dumpster fire, creates an explosion and brings the party to an end and right now we actually Have all three of these circumstances, including not one but two major negative explosion, catalysts? We have regional participation. We have the belief that this time is different and we have the pandemic and the war in ukraine as negative explosion catalysts.

So it seems that a crash is coming, so it's not a question of if, but rather when that is the real question now we know that crashes happen fast and if you try to get out of the market once a crash has started, you might lose 50. 60 70 of your portfolio timing. The market is not a good idea. On the other hand, that's the important part if you actually try to tag the market.

What do you actually do about it? If you know crash is coming because we do know now for sure that crash is coming, the only thing we don't know is when tomorrow next week, next year next month and unfortunately knowing that a crash is coming, is not going to help you, because you still Don't know when and not knowing when it's like 99 of the problem, because look, what are you supposed to do in the meantime, you can go 100 cash, which means you're going to lose 10 percent of your money per year, at least the real value or you Can stay in the stock market then risk losing 50 60 70, while the stock market actually initiates a crash, and you get stuck in both are not good alternatives now the catalyst for the next crash. Already here i just told you just pick one: inflation war interest rates, global pandemic supply chain interruptions. So since all of this usual suspects already here, how do you, as a retail investor, actually prepare for this because it is inevitable this crash is happening. So how do you prepare for this inevitable crash? Well, you do that by staying disciplined and sticking to a few basic rules, but please please please remember that me talking about these strategies does not constitute personal recommendations, and you should definitely seek professional financial advice before making any decisions.

I'm not just saying this now. Look rule number one is focusing on fundamentals and investing in quality companies. Now this is a good time to increase exposure to blue chip companies with well-established business model companies that generate consistent and stable revenues and cash flow companies with strong margins and clean balance sheets with low debt, high cash and good assets to liability ratios, which would basically Allow these companies to weather any crash with the least amount of damage taken now on the flip side, any company that doesn't fit this profile should definitely be considered as a candidate for the chopping block number two long-term dca is the winning strategy. Long term long term.

Think about it now you know the old saying time in the market is more important than timing the market. Well, it's true. It's literally impossible for anyone to consistently predict the market. You might hit it once or twice, but it's impossible to do it every single time.

So remaining focused on your highest conviction. Stocks over the long term would usually be a better strategy than trying to guess when exactly the crash will occur. Now this strategy eliminates all the emotions out of the game, essentially preventing you from doing stupid from making impulsive decisions. Now not to mention that, if you hold for more than a year, you will actually save money by not paying short-term capital gains tax.

Only long-term capital gains tax. So that's an extra twenty thirty percent in tax you're gon na be saving. Oh, the idea here is that sitting tight and just being patient and just letting the market do its craziness will actually work out in the long term. Now rule number three is diversification.

Now i'm a big fan of small portfolios with focus on your biggest winners, but i also have 40 of my portfolio in the s p, 500 at all times and true going wide and diversifying it's not going to make you a millionaire overnight. But it can help mitigate any losses during a market crash, though the idea would be here that in times of crisis, money has to flow somewhere. So while some parts of a portfolio will drop heavily, other parts may rise and offset these losses now. That is why i told you my portfolio has always and always had 40 of the s p.

500. The best way to diversify your portfolio is by investing in index funds like the spy which tracks the s p 500, but there are other ways to diversify. Your portfolio is your decision. For example, you can diversify with crypto and that's a great chance to mention our sponsor for this video ftx.

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You can dca and hold long term now. If you use my link below you're going to get a free crypto on all trades over ten dollars, use my call tom nash, one word to get the benefit and let's get back to the strategy now the next strategy is prepare. Emotionally, you have to know that a market crash will come, know your portfolio and understand it's going to suffer and you will not going to be able to see it coming in advance. There's absolutely no way you have to be stoic.

You have to be relaxed while everybody is just running around like headless chickens, panicking in the state of fear, and you just stay calm and collected. This will allow you to make analytical decisions, avoid stupid knee-jerk reactions and save your portfolio now. The next thing you have to do is prepare emotionally. You can achieve that by totally understanding the companies in your portfolio.

You have to learn their financials, their strategy, their management. Once you do that, the crash no longer is scary, it's actually becoming an opportunity. Imagine a sale of all your favorite video games. 70 off.

It's exciting, not scary, anymore. Look at warren buffett! Since this crash started. He is on a rampage spending all this cash. He was sitting on during the pandemic.

If you know the business and you understand that the business doing better than ever and the share price is coming down, you're not scared, that's why i'm buying more valentines more tesla, but for you there are other examples. The whole idea of the strategy is long-term dca patience, discipline and just staying calm and collected understanding what you have in your portfolio: understanding the business model diversifying and staying cool. That's like 99 of surviving a stock market crash and here's the kicker. It's not only going to protect you from the damages of the market crash.

Doing this long term and staying disciplined will actually help. You generate generational wealth for you and your family think about it, as always. A huge thank you for the channel members and the patrons for supporting this channel coming up in a second, our latest and newest channel members and patrons. Thank you so much.

Thank you for a sponsor. Ftx, we'll see you next video 30 hertz straight up.