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I believe in making things as simple as possible as the famous Albert Einstein quote goes.
“Everything should be made as simple as possible, but not simpler.”
And I work to simplify things as much as possible in every aspect of my personal and professional life.
Why?
Simplifying things makes them easier to understand and brings clarity to the important things you must do to reach your goals.
In the coming days and weeks, I’m going to share some of the simple but effective tactics I’ve developed over the last 13+ years off my career so you can use them to clarify things as well.
Because clarity will help you make better decisions. And better investment decisions lead to higher investment returns.
Before I get to today’s tip though I need to tell you something…
Just because something is simple doesn’t mean it’s easy.
Most people on Earth know that if they want to get healthier, they should move more and eat better. But it’s still hard.
Many of the things I’m going to share with you in the coming days and weeks follow a similar – simple but not easy – path.
If you follow them though, you’re almost guaranteed to earn higher investment returns over time than average investors.
Today, I want to share the #1 thing to do today to protect your investments from the coming crash.
The #1 Thing To Do Today To Protect Your Investments
Over the last few weeks I’ve outlined the massive economic issues we’re all facing today.
From US and worldwide mass unemployment.
To why 64 million Americans have $0 in an emergency savings account.
To why millions of Americans are no longer able to pay their bills.
And more.
We’re facing the worst economic issues worldwide in almost 100 years.
And in the short to medium term this will continue due to the records in new cases in the coronavirus worldwide.
We’re living through economic times we haven’t seen in any of our lifetimes.
This one thing works anytime there’s any kind of major macroeconomic issue like we’re dealing with today… All the way down to minor issues with an individual investment.
Worry goes away and calm returns after I do this exercise. And getting back to this mindset allows me to concentrate on what I must do daily to get closer to my goals.
So, what is it?
Anytime there’s any major issue with the economy or one of my investments I pause and think of only one question…
Does owning this investment still make sense for my long-term goals considering what I know about the company today?
All you need to do is answer this question for each investment in your portfolio.
That’s it.
Simple… But not easy.
There are many nuances to answering this question that fall outside the scope of this article. But if you can answer yes to this question you should hold the investment.
If not, you should sell.
It’s that simple.
Answering this question gives you 100% clarity on the investment or situation in question.
If you follow the answers to this question, you’ll sell out on investments that no longer fit your investment criteria. And this gives you more capital to invest in your best investments.
Plus, answering this question also allows you to keep your potentially great investments too.
Doing these things allows you to earn higher investment returns than average investors… And this allows you to compound your wealth faster.
This works today while we’re dealing with the worst economic situation in almost 100 years due to the coronavirus… Or whatever we’re dealing with tomorrow.
Go through your investments and answer this one question yes or no for each of them today to protect your portfolio and earn higher investment returns than average investors.
If you want to learn more of my top tips download our guide – 7 Things To Do Instead of Panicking – for free by clicking here.
Regards,
Editor
Team Bear Market
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