Do These 2 Things NOW to Survive the Next Stock Market Crash

About this Video

• Video Title: Do These 2 Things NOW to Survive the Next Stock Market Crash
• Channel: Felix & Friends (Goat Academy)
• Speakers: Felix
• Duration: 00:16:32

Introduction

This video discusses strategies for protecting a stock portfolio during an impending market crash. The speaker, Felix, emphasizes two key metrics for identifying quality stocks and suggests focusing on sector rotation and understanding market cycles to mitigate potential losses. He also warns about the potential impact of computer-driven funds (CTAs/Algo funds).

Key Takeaways

1. Identify Quality Stocks: Focus on companies with a gross margin above 60% and a Return on Invested Capital (ROIC) at least as high as your target return.
2. Understand Market Cycles: Recognize that market downturns present opportunities. Profit-taking during market highs and identifying sectors that perform well during downturns is crucial.
3. Monitor Sector Rotation: Pay attention to where institutional money is flowing to anticipate market shifts and identify strong sectors.
4. Beware of Algo Funds: Be aware of the significant sell risk posed by computer-driven funds (CTAs/Algo funds), which could exacerbate market downturns.
5. Develop a Plan: Have a plan for managing losses and identifying profitable opportunities during market declines. Don't solely rely on "buying the dip."