IMPORTANT WARNING: A Once in a Lifetime Event is Coming | Tom Nash YouTube Video Summary

The Importance of Preparing Your Portfolio in a Bull Market

Tom Nash delivers an important message to every investor. He discusses the question on everyone’s mind: Is the AI Bubble about to pop, and are we gearing up for a crash? It’s crucial to know when to set up your portfolio, prepare, and strategize for potential problems.

The Right Time to Prepare for Potential Problems

According to Tom Nash, the right time to set up your portfolio and strategize for potential problems is when the market is still in a bullish cycle. Despite the talk about a crash, we’re not even close to that yet, but that’s exactly when you want to start prepping for the inevitable correction or crash. You want to be doing that when things are good, and the market is still in a bullish cycle. “You certainly do not want to be doing this after the market started crapping itself” says Tom Nash.

Current Fear and Greed Index

If you look at the Fear and Greed Index, it may shock you to find that despite a huge bullish cycle for the past three years, we are at maximum fear at about 22. The key is to stay calm and realize we are still in a bullish cycle, and that we have plenty of time to prepare and strategize for any inevitable correction. There is no rush to do anything, and you don’t want to be complacent.

Normal Market Conditions

If you started investing in the past 15 years, you really haven’t seen a normal market. What we’ve seen is mostly a very bullish cycle with two minor V-shape recoveries in 2020 and 2022. As a result, new investors haven't seen a 'U-shape' recovery (where things don't bounce back right away), or worse, a 'W-shape' recovery where markets go down and then back up before going down again in the second wave.

Getting Out Before It's Too Late

According to Tom Nash, “investors are absolutely not ready for a W or U-shape recovery.” Many investors are not ready emotionally or financially, and they don’t have a strategy in mind for how to deal with these risks. “Just hoping it’s not going to happen or saying, hey, it’s unlikely. The probability is very low. Oh, I hope it doesn’t happen, is not a strategy how to handle this. You gotta be prepared.”

A Four-Part System To Protect Your Portfolio

Here are the following steps Tom outlines to avoid large downturns:

1. Emotions; Recognize that 90% of investing is emotional control.
2. Insurance; It would be foolish not to take some profit/ trim some of your biggest winners in the hyper bullish market we are currently in.
3. Protection M; Commit 10% of your portfolio towards protection, for example, investing in the “cockroach portfolio”
4. Tactical Investing; Every month, invest into some of the high quality stocks and long-term compounders using a dollar cost averaging system to build on existing positions. 50% speed. This system turns fear and panic into profit. A useful platform for research and evaluation can be found at stock-mvp.com. Use code BF35 for 35% off a lifetime of use.

Tom Nash Rock Academy

Want to learn more about how to value companies and select the best stocks for your portfolios? You can join Tom's rock academy, patreon.com/tomnash.