Eieio, For every market collapse there is a recovery. The best protection is to have a percentage of your investments in cash, and the balance in the best blue chip dividend paying stocks, and not to be holding any stocks that have too much debt or those that might not survive an extended credit crunch. There are stocks like some of the banks, Woolworths, Wesfarmers Woodside , etc that have had growing profits and growing fully franked dividends for many years. These stocks always bounce back and in some cases continue to perform throughout any global crisis. People must eat, drink , drive cars and pay their mortgage. Any severe market downturn always provides opportunities, so having some cash not only enables preservation of capital during a crisis but allows you to buy up the best value stocks. Some of our bank stocks went down to $16 during the GFC . They now sit well over $30 and still have growing profits and dividends.
