We cover 3 crash proof portfolios to protect against a stock market crash, specifically the All Weather Portfolio, Permanent Portfolio, and Golden Butterfly Portfolio. Subscribe here for more content: http://bit.ly/SubscribeMichaelJay

In addition we will walk through how these portfolios achieve better risk adjusted returns than simply the total stock market alone and two tools that you can use to explore portfolio allocations that may be best for you. These tools shown are from Portfolio Charts.

Navigation
00:00 – Warren Buffett’s top 2 rules on investing
00:44 – Why this topic is so important
01:02 – Historical context in the markets
01:47 – Why this bull market has been so strong
Portfolio Planning for the Future
03:44 – End of the bull and understanding risk
04:20 – Importance of portfolio allocation
04:56 – Portfolio 1: Total Stock Market Portfolio
Measuring Risk (sub-topic)
06:28 – Drawdowns as a measure of risk
06:44 – Ulcer Index explained
07:12 – Problems with standard deviation
08:28 – Total stock market return heat map
09:16 – Portfolio 2: Classic 60-40 Portfolio
Crash Proof Portfolios
10:41 – Objective of crash proof portfolios
11:00 – Portfolio 3: Ray Dalio’s All Weather Portfolio
13:09 – Portfolio 4: Harry Browne’s Permanent Portfolio
14:57 – Portfolio 5: Golden Butterfly Portfolio
15:40 – Note on small cap value stock outperformance
15:52 – Golden Butterfly returns and risk
Useful Portfolio Research Tools
17:41 – Tool 1: Portfolio Finder
18:48 – Note on gold’s diversification benefits
19:34 – Tool 2: My Portfolio Analyzer
Addressing Objections
20:34 – Objection 1: Back testing and over-fitting data
21:20 – Why this data only goes back to 1970
21:46 – Objection 2: Does gold even belong in your portfolio at all?
Final Thoughts and My Investing Framework
22:17 – Temptation of stock heavy portfolios
22:44 – High stock valuations and lower future returns
23:27 – Don’t abandon stocks completely, but understand the risks
24:11 – Suggested video / Outro

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DISCLAIMER: This video is a resource for educational and general informational purposes and does not constitute actual financial advice. No one should make any investment decision without first consulting his or her own financial advisor and/or conducting his or her own research and due diligence. There is no guarantee or other promise as to any results that may be obtained from using this content. Investing of any kind involves risk and your investments may lose value.

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