#264 How to Prepare for a Market Crash (Without Losing Sleep) ft. Peter Kim, MD
In this episode, Dr. Peter Kim shares how to build a recession-resistant investment strategy—so you can sleep well at night no matter what the market’s doing. He breaks down the biggest mistake physicians make with their portfolios, why diversification matters more than ever, and how real estate fundamentals still win in tough times. Plus, he explains how mindset, liquidity, and community are key to long-term financial peace. If you’re feeling uncertain about the economy, this episode is a must-listen.
Worried your investments aren’t ready for a downturn?
Download the Physician’s Recession-Resistant Investment Checklist—a quick, practical guide to help you assess your portfolio, strengthen cash flow, and build lasting resilience. Use Dr. Peter Kim’s proven 5-step framework to create stability, reduce risk, and sleep better at night—no matter what the market’s doing.
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Episode Highlights
Now, let’s look at what we discussed in this episode:
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Prepare for Market Ups and Downs
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Diversification Is Key
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The Power of Community and Mastermind
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Back to Real Estate Basics
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Sleep Well with a Solid Plan: Grab Our FREE PDF Checklist!
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
Prepare for Market Ups and Downs
Peter kicks things off by asking: “If the market dropped 20% tomorrow, would you be ready?” He reminds us that downturns are normal—market corrections happen every year, and bear markets show up every 5–6 years. Real estate, while slower-moving, still gets hit, especially in sectors like multifamily where short-term loans and rate hikes are causing stress.
The key message here is: don’t panic—prepare. If you’re feeling uneasy, that’s okay. Many are. But resilience comes from knowing downturns are part of the journey.
Diversification Is Key
Too many people go all-in on one investment—stocks, or a single real estate deal. Peter warns against this. Instead, he encourages strategic diversification: mix of equities, bonds, real estate, and alternatives (like private credit, energy, or gold).
He even mentions the “All-Weather Portfolio” from Ray Dalio—a mix of uncorrelated assets built to survive any economic season.
Focus on Cash Flow Over Appreciation
When market conditions are tough, Peter emphasizes that cash flow is king. Many investors chase appreciation during booming times, but predictable, steady income is what provides true security. Real cash flow—month after month—is what supports your lifestyle, regardless of market shifts.
He encourages conservative underwriting, stress-testing deals, and ensuring investments hold up even if rents drop or vacancies rise. It’s not about hitting home runs—it’s about consistent, durable returns.
Back to Real Estate Basics
Peter goes deeper into why fundamentals matter now more than ever in real estate. With interest rates rising quickly, many operators are struggling, especially those with short-term loans. He admits past mistakes of trusting big names without digging deeper—and stresses the importance of vetting sponsors closely.
This environment, he says, reveals who’s truly capable. Look for partners who are transparent, conservative, and committed for the long haul.
Sleep Well with a Solid Plan: Grab Our FREE PDF Checklist!
To build peace of mind, Peter suggests three things:
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Keep 6–12 months of liquidity.
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Maintain a confident mindset—avoid fear-based decisions.
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Surround yourself with experienced, grounded investors.
He also touches on alternatives like private credit, oil, and crypto. These can diversify your portfolio if used wisely and in moderation. Ultimately, investing should help you feel secure, not stressed—and that means having a plan that works in good times and bad.
To help physicians stress-test their portfolios, Peter created a free resource: The Physician’s Recession-Resistant Investment Checklist. It walks through the exact steps he uses to evaluate diversification, cash flow, liquidity, and risk exposure—so you can identify weak spots and feel more in control.
YOU KNOW ALL TOO WELL THAT ENTREPRENEURSHIP CAN BE A LONELY BUSINESS.
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