1929 crash: good to keep in mind

I found an interesting piece in the Globe Investor Gold edition from the Contra Guys regarding what was being said by the media and the big banks as the stock market was going down before the big 1929 crash. Everybody was reassuring and saying the fundamentals were sound. It finally took until 1954 for the stock market to come back to the 1929 high.

They don't give specific advice in their article. My personal advice is too always remain cautious about the stock market (diversify, hold some bonds, buy good companies, etc.). On the other hand, I don't think there is any need to panic. The markets have been pretty resilient even through the 2001 bust. They recovered very quickly since then.

That said, there is always a part of me wondering if a 1929 crash is still possible ... if yes, is there any way to have a portfolio that would prevent major losses? I've been investing in defensive stocks since last year and I almost didn't feel the recent drop. I've also been investing in some highly speculative uranium and junior mining stocks and they've been doing incredibly great lately. But in any case, I have no confidence that I have a portfolio that could withstand a big crash. What's your take on this?