5 Proven Strategies That Protect Wealth During Market Crashes
Historical data reveals that successful investors follow specific patterns during market downturns. Our research team has identified the most effective approaches:
- Dollar-Cost Averaging During Dips - Systematic buying during market declines has outperformed lump-sum investing by 23% over the past 50 years
- Defensive Sector Rotation - Moving into utilities, healthcare, and consumer staples before crashes can reduce portfolio losses by up to 40%
- Options-Based Hedging - Strategic put options and covered calls provide downside protection while maintaining upside potential
- International Diversification - Spreading investments across uncorrelated global markets reduces overall portfolio volatility
- Alternative Asset Allocation - REITs, commodities, and cryptocurrency can provide portfolio stability during traditional market stress