If You Need to Protect Your Portfolio, Do This Now
2020 has been a wild year for investors. The stock market soared to new highs, only to plunge in the wake of the coronavirus outbreak. After hitting bottom, markets have soared upward in a quick recovery, and at least a couple of stock benchmarks have reached new records once again.
When the initial phase of the COVID-19 outbreak led to one of the fastest bear markets in history, the best advice investors could follow was not to make any rash decisions with their investments. That advice served those who followed it well, as the bounce has helped many investors recover much or even all of their losses. Staying pat was hard, though, if you felt blindsided by the coronavirus crisis and suddenly became aware that the risk level in your portfolio was too high.
Fortunately, you now have your chance to reconsider your investing strategy calmly and objectively. If the bear market was a wake-up call that you had too much risk in your portfolio, then now that stocks have recovered most of their lost ground, you can adjust your asset allocation without doing major damage to your long-term financial prospects.
Source Fool.com
