How To Prepare For Unexpected Investment Risks

Bad advice: “Markets are down, just ride it out.”   Better advice:  Don’t just ride it out – do something.   For the record, history shows that maintaining a long-term approach is one of the most effective strategies for navigating market volatility.   However, even if you’re a passive investor You can still be an active planner     Here’s what I’m focused on right now –   1. Harvesting Tax Losses   Realize losses on taxable investments to offset gains now or in the future.   It’s a smart way to create long-term tax advantages from short-term discomfort.   2. Rebalancing Portfolios   Use the downturn to buy low and restore portfolios to their target allocation.   It’s a disciplined way to manage risk and capture future upside.   3. Roth Conversions   Lower asset prices mean lower tax costs to convert traditional IRA dollars to Roth.   This can set up clients for years of tax-free growth.   4. Process and Reinvest RMDs   Required Minimum Distributions don’t stop during a downturn—but reinvesting them thoughtfully can keep that money working for the long haul.   This is an especially great time to distribute from IRAs inherited after 2020 and reinvest the proceeds.   5. Gifting to Kids and Grandkids   Down markets can be a great time for tax-efficient gifting.   Transferring assets when prices are lower can amplify the benefit to younger generations over time with less impact to lifetime exclusions.   6. Reaffirm Goals   Market volatility feels less scary when clients are reminded of their long-term plan, time horizon, and financial progress.   Recenter the conversation on purpose—not panic.   By focusing on what you can control, You turn uncertainty into opportunity And keep your plan moving forward, No matter what the markets are doing

Markets wobble. Fear rises. The smart don’t react, they prepare. Here’s how disciplined investors stay calm and strategic: 1. Diversify Investments ↳ Spread risk across assets ↳ Reduce single-market impact → Balance beats concentration 2. Keep a Cash Reserve ↳ Liquidity for surprises ↳ Opportunity to buy dips → Peace of mind pays 3. Rebalance Portfolio ↳ Lock in gains from strong assets ↳ Restore original risk mix → Discipline protects returns 4. Focus on Quality ↳ Strong fundamentals weather storms ↳ Low debt, reliable earnings → Stability compounds value 5. Avoid Emotional Decisions ↳ Skip panic sales ↳ Ignore hype and noise → Strategy beats instinct 6. Increase Defensive Holdings ↳ Invest in resilient sectors ↳ Dividends keep flowing → Risk managed, income steady 7. Maintain a Long-Term View ↳ Remember history’s recoveries ↳ Focus on compounding, not spikes → Patience outperforms panic 8. Use Dollar-Cost Averaging ↳ Buy steadily over time ↳ Smooth out price swings → Consistency beats timing 9. Review Risk Tolerance ↳ Align with current goals ↳ Adjust comfort with volatility → Stress-free portfolios last Volatility is inevitable. Your reaction determines your results. What strategy keeps you steady when markets shake? Follow me Marc Henn for more. We want to help you Retire Early, Supercharge Your Cash Flow, and Minimize Taxes. Marc Henn is a licensed Investment Adviser with Harvest Financial Advisors, a registered entity with the U. S. Securities and Exchange Commission.

Learning Quantitative Trading: “The next crash won’t look like the last one. But the pain will feel the same.”→ Get prepared to stay long and survive the Black Swan. In a market flooded with record-high valuations, almost no one is preparing for the unexpected. Yet the warning signs are flashing red: ⚠️ Historically high stock valuations ⚠️ Unsustainable U.S. debt levels ⚠️ Escalating trade wars & geopolitical instability ⚠️ Central banks trapped between inflation & recession If you’re building a portfolio based solely on historical averages… you’re ignoring the rising probability of a Black Swan. That’s the kind of dislocation that reshuffles everything. Inspired by Mark Spitznagel and Nassim Taleb, this is how you build a portfolio that doesn’t rely on forecasts — it embraces uncertainty. 1. Barbell Thinking: → Embrace Extremes. Avoid the Middle. Build portfolios with: • Extreme safety: Treasuries | Gold | Long Volatility | Protective Options • Extreme asymmetry: Early-stage tech | Underpriced innovation | Moonshots The goal isn’t to predict. It’s to survive — and capitalize. 2. Hedge Rare, Not Frequent Events Most portfolios are built for “normal” volatility. But real destruction comes from rare, high-impact shocks (think 2008, 2020, 1929). Hedge like Spitznagel: • Deep OTM Puts • Long Volatility (VIX) • Convex, asymmetric payoff structures 3. Positioning for Regret Minimization Markets may still melt up before they melt down. So how do you stay invested without being exposed? Structure a portfolio that: ✅ Thrives in good times ✅ Explodes in bad times ✅ Wins over the full cycle 4. Asymmetric Moonshots = Positive Black Swans A small allocation to speculative innovation can reshape your entire return curve: • Quantum Computing • Gene Editing • Space Launch • EM Fintech Most will fail. But one big winner = portfolio-changing. Bottom Line: Markets don’t reward the most bullish or the most bearish — they reward the most prepared. Risk isn’t the enemy. Fragility is. A relevant reading: https://lnkd.in/eWW6nE3S Let’s discuss: • What are your favorite tools/assets for tail risk hedging? • Is Black Swan hedging worth the cost in calm markets? Drop your thoughts — this is the conversation we should be having in 2025. #investing #riskmanagement #blackswan #spitznagel #tailrisk #portfoliohedging #gold #volatility #quantfinance #macro #valuation #tradingstrategy #marketcrash #recession