Many investors have been on edge for months, with concerns that an AI bubble or a weakening job market could lead to a recession. But now, amid increased political uncertainty and conflict abroad, fears about the stock market are amping up.

To be clear, nobody knows what the market will do in the near term. Even the best economists in the world cannot guarantee that a market crash or recession will or will not occur in the coming months.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

However, no matter what happens with the market, there's one crucial move all investors should make right now.

Where you choose to invest will perhaps have the biggest impact on how your portfolio fares during a recession.

During periods of prosperity, it can sometimes be tough to differentiate strong investments from weak ones, as even shaky stocks can soar in price. This is especially true of companies in hyped-up industries, as many investors are eager to buy into a sector without necessarily considering whether a stock is a viable long-term investment.

Company health can also change over time. A once-strong organization may experience a major change in leadership, for example, and the new folks in charge begin making questionable business decisions. Or the industry landscape shifts, and a company that used to dominate the space is now struggling to keep up with its peers.

In all of these cases, weak companies are much more likely to struggle during tough economic times. Recessions are the ultimate test of strength, and companies on shaky foundations could very well crash and burn if the market takes a turn for the worse.

The best way to safeguard your portfolio against a market crash or recession is to invest only in high-quality stocks with solid fundamentals.

While there are many factors to consider when choosing stocks, a few of the most important signs of a strong company include:

Healthy finances: Combing through a company's financial statements can give you an idea of whether it's on solid footing. Metrics like the price-to-earnings (P/E) ratio and the price/earnings-to-growth (PEG) ratio, for example, can help determine a company's value and growth potential, while the debt-to-EBITDA ratio can gauge its risk.

Competitive advantage: Some companies simply have more to offer than their competitors, whether it's lower prices, superior customer service, or higher-quality goods. The stronger a company's competitive advantage in its industry, the greater its chances of surviving a recession.

Industry potential: As times change, sometimes entire industries struggle to remain relevant. Even if a business is fundamentally sound, it may still struggle to thrive if it's part of a dying industry.

Competent leadership team: An executive team's decisions during pivotal moments can make or break a company's potential. If a company is otherwise strong but its leaders consistently make questionable decisions, that stock may not be as reliable during tough economic times.

A strong portfolio of healthy stocks is highly likely to weather even the worst market downturns or recessions. No matter what lies ahead for the market, the right strategy can recession-proof your portfolio.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $482,537!*

Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,663!*

Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $511,735!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of March 9, 2026

The Motley Fool has a disclosure policy.

Worried About a Stock Market Crash? This 1 Move Will Make or Break Your Portfolio Right Now. was originally published by The Motley Fool