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Three Considerations When Adjusting Your Portfolio In A Bear Market

Sustainfolio

With the stock market down and a recession possibly looming, many investors are tempted to adjust their portfolio. One factor to consider is that your portfolio has already shifted away from stocks due to their lower values. This means less risk. A second issue is if you choose to shift towards cash now, you would still be left with the difficult decision about when to reenter the market. Develop a plan first. The final consideration is diversification. This is something you definitely want to do.

Key Takeaways:

  • As March rumbles to an end, the U.S. economy and perhaps the world at large seem headed for a recession.
  • That stalwart financial and economic metric, Standard & Poors is 25% off it’s peak.
  • Remember if you elect to pull money out now,that is only half the battle. Getting it back in could prove harder.

“One change that likely is appropriate in this or any market environment is diversification.”

Read more: https://www.forbes.com/sites/simonmoore/2020/03/28/three-considerations-when-adjusting-your-portfolio-in-a-bear-market/