Illustrator Andrea Ucini / U.S. Economy Collapse: What Will Happen, How to Survive

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Where are we today? From 2009-2015, the traditional 60/40 portfolio outperformed the 40/30/30 strategy. This is the time to stand your ground. Prepare for a major market correction and silence the voice that’s telling you to focus on your short-term performance. The U.S. stock market became extremely overvalued as of the end of 2013. Mean reversion, according to Grantham, Mayo, Van Otterloo & Co., often takes around seven years to occur. That means that by the year 2020, stocks should fall to fair value. Now is the wrong time to abandon protective strategies.

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