The Market CRASH Is Coming (How To Prepare in 2022)

Prepare for the market crash of the stock market in (maybe) 2022

The Market WILL Crash ...at some point. Maybe not this year, maybe not next year, but at one point it will, just like it has before. Here are a few ways you can prepare and maybe even make some money along the way.

The first thing we should all be doing regardless of market conditions is saving cash from the income we make or from our businesses but for a particular goal. The first is to take advantage of investment oppurtunities as prices go down - if we believe there will be a market correction during this next year then we can use our saved cash to buy the dip. If the market actually crashes then it’ll be nice to have some money on the side ready to attack. another reason to have cash on the sidelines is to start paying down your debt. The worst thing is to have borrowed money and have a market crash. Use some of that money and pay off your margin, pay off your credit cards, and pay off any money you may have borrowed.

Time to hedge our positions. Large institutions and hedge funds are constantly hedging their portfolio against potential downturns in the market. Buying puts on index funds. This is a classic hedge that you see all the time hedge funds use to protect themselves. The idea is to minimize your losses by making some money on the downside, so when your portfolio loses money your puts will make up for it. Another great way to hedge against the downside is to sell covered calls. Now this is something that a lot of people don’t think of because it doesn’t automatically feel like a hedge but it is. See when you sell covered calls on your stock then you collect a premium. If the market goes down then it would have to go down and lose you more money than the premium you took in for selling that call.

the next step is to start buying into the market at lower prices - essentially dollar cost averaging into the market. I think we all can agree that if the market crashes or takes a dip that it won’t stay like that forever as history shows, so we want to take advantage of the “sale” and buy into the companies we believe in at these new lower prices. You can do that with the cash you have sitting on the sidelines like we spoke about in step #1 - you can also do that with the premium received from your hedge like we spoke about in step 2.

This next step is one I think a lot of people don’t do - not only in trying to protect their portfolio but in investing in general and that’s to reevaluate your portfolio. Now in the contexts of this video, we want to reevaluate the investments you are making to see if they will hold up in a market downturn. Now typically the first to go would be any short term options that could be wiped out completely with a market crash - this is an obvious point however I feel I should say it again ..and again. If you are going to buy call options on companies at least go out 1-2 years - the further out you can go the less your option will lose to theta decay. Also, if there is a crash like we had in 2020 and the market recovers then your options will have time to recover.

Fixed income is a type of assets that you can invest in that pays out a set level of cash flow you, the investor, typically in the form of fixed interest or dividends. Treasury bonds would be an example of a fixed income asset.

I am not a financial advisor - none of the above video is meant to be taken as investment advice. I am just showcasing MY own strategy and my investments should not be tried and duplicated based solely off the information in this video for risk of losing money.

[litradanniella]

Successful people don't become that way overnight. What most people see at a glance wealth, a great career, purpose is the result of hard work and hustle over time. I pray that anyone who reads this will be Successful in life.

[wedsonolivia]

My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless.

[PierceJPeterson]

Just need to keep investing for the long term, even when others are fearful. Great stuff man!

[johanlorenzo]

I couldn't agree more. Being liquid is KEY for when the stocks are on sale. 🔥💯

[Alexander-ipqg]

I love your videos man, you should make a series starting from nothing. Would help a lot. Keep up the amazing work!!

[IIDTXxPRoII]

been waiting for another video since i subscribed 4 days ago and smashed through all of your videos twice! I've placed my first sell call order and it doing very well. Almost up 50%!! thank you. keep the great videos coming

[NolanGouveia]

It’s simple! Short term gains are cool but stressful.. Long term wealth building just takes consistency and understanding where to invest your money!

[alexjones]

*The crypto market has been favourable in the past weeks, I keep missing out on this opportunity, I'm most certainly very impatient how can I ever make a profit in the crypto market.*

[FinancialSelfReliance]

These are some great points. I want to learn more about buying puts and selling covered calls... I'll watch some of your other vids. Thanks again for this vid.

[MrRapSick]

dude i started buying hella puts because of this video and how well christmas rally cooled off into 2022.. your a beast.

[zerosama]

Your videos are awesome, and yes the market is kicking our asses.

[arigutman]

Thank you for the video, a lot to unpack, but I think we are in the midst of exactly how turbulent it is going to get as we speak.. The FED is giving us EVERY THING WE NEED TO KNOW before it happens... I never understand why everyone is so surprised.. Regardless, this volatility is opportunity to buy high quality stocks when they go on sale... Exactly what I have been doing. After all, wealth = consistency + patience... 2 to 5 to 10 years the investor jumping in now will be better off..

[kylegodsey]

I like the word “pullback “ makes me feel better😉😂

[drjsantosable]

I have about $100k in call options on many different stocks near or at their 52 week lows, expiring January 2023 and June 2023 and Jan 2024, either I will make a lot of money or lose half of that money😅

[chrismanzi]

Don't time the market. Don't keep cash on the side purely for the sake of buying a dip.

[MrSyfygamer]

I started selling calls on AMC. This is my first weeks doing it and I’m going too use the money I earn to build up my shares in AMD, Tesla and nvidia!

[drhenderson]

I have become a big fan of put calendar spreads !

[kylegodsey]

I’m fairly new to this channel has Alex ever showed his portfolio?

[sanchez]

It is easy to say you don’t use margin if you are rich

[wrinklybird]

well as long as the banks do not fail and people do not panic, i do not think this will be another great depression. if you invest for the long term you will be fine.