You Just Got a Second Chance to Save Your Stock Portfolio

It's not often that you get a second chance after you make a mistake. But investors who found out the hard way that their stock portfolio had more risk than they thought now find themselves with that unusual opportunity. Specifically, those who hadn't rebalanced their investments to reflect their true risk tolerance before the coronavirus market crash are now in a position to do so without damaging their portfolios.

Millions of investors had enjoyed huge gains in their investments during the 2010s. With very little volatility during the entire decade, the best-performing strategy to follow was simply to let your stock market profits ride. Moreover, as interest rates continued to drop, many investors beefed up their allocations to dividend-paying stocks as an income-producing substitute.

That led to a huge rise in allocations to stocks. Even some risk-averse investors felt they had no good alternative to putting more money in the stock market.

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Source Fool.com