7 Stock Investing Strategies for Safety in the Stock Crash

Joseph Hogue
•June 1st, 2022
DESCRIPTION
The stock market crash could get worse before it gets better and you need a stock investing strategy that can provide safety and growth. In this video, I’ll share seven investing strategies you can use for safety in your portfolio. Seven ways to set up your portfolio for safety in the stock market crash. I’ll explain how to set each up and how to use it to protect your money.
In each of these, you’ll see the stock strategy performance in purple against the S&P 500 in red and there’s two things I want to point out here because they’re extremely important to that idea of protecting your money.
Check out the first video in our stock strategies series, the strategies that BEAT the Market! https://youtu.be/-teV4yNsfKI
First is you’ll notice in a few of these that just a buy-and-hold strategy of the stocks in the S&P 500 index outperformed. For example from 2008 in our first strategy, stocks in the S&P produced a return of just over 300% while the strategy only produced about a 162% return over the period.
So I’m not saying these strategies are going to beat the market or that buy-and-hold strategy, what I am saying is just as, maybe more important. If you look again at the charts, you’ll see these stock strategy returns have been much less volatile than the stock market index. Portfolios using these strategies fell much less when the rest of the market crumbled back in 2008 and again in 2020. And in fact, if you look at the Max Drawdown number for each, that’s the maximum percentage the portfolio has fallen during the test period. Now Max Drawdown is a technical term but you can think of it as a measure of how easily you’ll be able to sleep at night when the rest of the market is crapping dump trucks in a crash.
Many of these stock strategies are hedging strategies, using an indicator to measure if the market is more volatile than usual or if it’s already in a downtrend. If it is, then you don’t try to beat the market or buck the trend, instead you find safety and wait for everyone else to lose their money. That's what makes them safer than just buy-and-hold strategies.
This video was sponsored by Composer. All research, recommendations and opinion is that of the creator and no content was written or provided to the channel from the company. Sponsorships like these help me provide free research into this and other companies for investors. See important disclaimers: cmpsr.co/cd
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

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