How to Protect Your Capital in a Dangerous Climate

How to Protect Your Capital in a Dangerous Climate

“For those properly prepared, the bear market is not only a calamity but an opportunity,” said investing great Sir John Templeton. Are you ready or are you running? 

News headlines are drenched with the same old same old: Coronavirus is spreading, business and travel interruptions are occurring, and global stock prices are sinking fast. Blah, blah, blah. Welcome to the new realities of investing in the 2020s.

The last decade was defined and dominated by growth investing. During the past 10 years, the iShares Russell 1000 Growth ETF (IWF) racked up a +253% gain compared to a gain of just 190% for the SPDR S&P 500 ETF (SPY). Growth stocks like Nvidia, Lululemon and Salesforce were the rage.

Fast forward to now. Sentiment toward growth stocks and most equities has soured. Fundamental exercises like hedging risk and controlling equity exposure were laughed away, but not anymore. Protecting your capital in a dangerous environment is the new focus and there’s plenty of ways to do it.

In this podcast episode, titled “Why Defense is a Winning Investment Strategy Right Now,” Ron DeLegge at ETFguide chats with Dave Mazza at Direxion Investments about defensive investing strategies and how to capitalize on crashing markets.

Also up: Ron gives you a case study in the peril of exhausting your money. Memo to retirees and near retirees: PAY ATTENTION! ETFs mentioned in this episode include ticker symbols TMF, FLYT, SPDN, SCHB, BND, GLD, and others.

Be sure to enroll in ETFguide’s class Profit During Crashing Markets: A Step-by-Step Guide. The class is designed for people that want to take control of their finances and grow their net worth – even when financial markets are in complete chaos.

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