5 Tips to Fortify Your Portfolio Against a Potential Market Downturn
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Review your portfolio for overexposure to sectors, industries, or types of stocks that could move together in a downturn. Understand the risks.
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Build up cash positions steadily over time rather than trying to time market bottoms. Use new contributions.
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Invest for the long-term based on belief in the company, not to chase short-term stock momentum. This conviction can prevent bad selling decisions.
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Make incremental changes based on risk tolerance. Don't overhaul your whole strategy.
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If overallocated, underdiversified, or leveraged, make appropriate moves now to rebalance and prevent catastrophe.