Assets one may explore for 2022 market crash protection

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Assets one may explore for 2022 market crash protection

Stock prices largely held steady despite the coronavirus pandemic last year.
Image source: © Stbernardstudio | Megapixl.com

Highlights

  • Stock prices largely held steady despite the coronavirus pandemic last year.
  • We don't know so far how Omicron would impact the economy or the stock market this year.
  • However, we still can get ready and prepare for a stock market crash for the worst possible scenario.

Stock prices largely held steady despite the coronavirus pandemic last year. It would be too early to predict what the market has in store in 2022. However, the arrival of Omicron has raised concerns among investors worldwide. While a section of analysts doesn’t expect the new variant to be much concerning, other predicts it to fuel volatility in bourses.

Either way, we don't know how Omicron would impact the economy or the stock market. However, we still can get ready and prepare for a stock market crash, for the worst possible scenario. We can closely look at investment portfolios and include some new crash-resistant assets.

Here are a few assets that one may explore for the 2022 market crash protection:

Government bonds

Government bonds have not been very popular of late since they pay low yields in the current low-interest rate scenario. However, the government is considered the best choice when it comes to balancing a down market. Bonds did well during the tech crisis, posting more than 8% returns in 2000, 2001 and 2002.

Image Source: © Stbernardstudio   | Megapixl.com

REITs

Getting into real estate is one of the best ways to diversify your investment portfolio. And yes, this is very much possible without owning physical assets. You can branch out into REITs or real estate investment trusts, without having to worry about repairs. Just like publicly listed stocks, there are REITs which can be easily tracked on stock exchanges. REITs not only pay higher dividends than most stocks, but they are also highly liquid.

Copper

The choice of copper must have come out of the blue for many. But if legendary investor Jim Rogers can bet on copper, why can’t you? Rogers recently recommended keeping copper in the portfolio to ride out a possible 2022 downturn.

Copper hit new highs in 2021. But Rogers continues to favour copper for a very simple reason – electric vehicles.

In a recent interview with CNBC, Rogers said: “An electric car uses several times as much copper as a combustion engineering car, so there’s going to be a huge demand for some of these metals that we didn’t have before.”

Gold

Gold is universally considered a safe-haven asset where one’s money can be protected. It is due to the reason that gold is a physical asset that can be bought and sold around the world. During the massive stock market crash of 2008, from early November to March 6, when the market tanked, the S&P 500 fell by 30%. The yellow metal was up by nearly the same amount.

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