The country is awash in optimism, and stocks are trading at all-time highs. Even a rate hike by the Federal Reserve couldn’t stop the bulls from running down Wall Street. So why am I playing the role of Cassandra and reminding you about places to run and hide during the next market crash?
I live in Southern California, and not too far from the San Andreas fault. That means at any time, I can be the victim of Earth’s tectonic caprice. Knowing this has prompted me to prepare, and that means I have emergency food, water, batteries, a generator and all sorts of other items I may need to ride out any loss of normal access to essentials.
When it comes to your money, you also need to be prepared.
Yes, the market continues to trade higher on the hope that the pro-growth policy prescriptions of President Donald Trump will be enacted by Congress. Hey, I’m optimistic about that too, and I’m personally long many “Trump-on” stocks and sectors.
Yet if “Trump on” morphs into “Trump off” due to policy disappointment, we could be in for an equity market earthquake capable of shaking your money to the core. That means now is the time to prepare, lay out your worst-case crash scenario strategy, and make sure you know all about the investment tools you can use if the optimism trade comes tumbling down.
Here are eight places to run and hide in a market crash.