The Best Way to Crash-Proof Your Portfolio

With stocks at record highs, many investors are getting nervous about a potential stock market crash. But selling off your investments isn't the answer. Fortunately, there are better alternatives to crash-proof your portfolio.

In the following video, Fool contributor and financial planner Dan Caplinger shares his views on how to best prepare for a future downturn. Although the temptation to dump your entire portfolio is strong, countless investors have been stuck on the sidelines for years during the current bull market after having followed the same strategy during the 2008 market meltdown. Instead, Dan suggests a more measured approach that he describes in detail in the video, with an emphasis toward finding balance while remaining consistent with your overall investing strategy.

Investors have turned to consumer giant Johnson & Johnson lately for crash protection, but is it a good choice? In our premium report on the health-care giant, we examine whether J&J is still worth buying even at relatively high valuations. Read about the Johnson & Johnson story in terms that any investor can understand. Claim your copy by clicking here now


The article The Best Way to Crash-Proof Your Portfolio originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems, Johnson & Johnson, and Procter & Gamble and owns shares of Johnson & Johnson and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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