We can see this in the Swiss pension funds: They are required by law to hedge against crashes. That’s the reason they are only able to pay out 1-2% in returns to the insured clients, even though their assets in stocks, obligations and real estate yield 5-8%. The difference goes to the administrative costs and the hedging.
The solution is to invest regularly and in a balanced way. That means not buying too much when the market is doing well. And not selling your stocks when the market is in a downturn – if anything, this is the time to buy more. However, the even smarter approach is to design an investment strategy that you can stick to – even when everyone else is panicking. And to ignore the prices, because they fluctuate anyway.
That is my strategy to protect against the imminent crash: I ignore it, and as soon as it arrives, I utilize it. Because once the prices are at the bottom, you can buy previously expensive stocks for cheap. When looking at it that way, I almost look forward to the crash.