61% of Americans Risk Major Losses During the Next Stock Market Downturn

Stock market volatility is by no means a new concept, but over the past eight months, investors have seen their fair share of it. In March, when news of the coronavirus pandemic broke, stock values plummeted, sending investors into their first bear market in over a decade. And while stocks recovered nicely after the fact, the market saw a major sell-off in early September, and a host of turbulence in October as the presidential election neared.

But while 2020 may read like a particularly volatile year, it's certainly not the first period during which the stock market has had its share of ups and downs, and as an investor, it's crucial that you take steps to protect yourself from extended periods of market decline. This especially holds true if you're nearing retirement, because if you're forced to tap your 401(k) or IRA when your portfolio value is down, you'll risk locking in permanent losses that hurt you throughout retirement.

Unfortunately, only 39% of Americans consider their investments to be well-protected from stock market downturns and volatility, according to a recent TIAA survey. If you're part of that statistic, then it's time to make changes to your portfolio -- before it's too late.

Source Fool.com