Friday, March 11, 2022

What Should we do during stock market drop - Part 4

 

Rebalance your portfolio after things have calmed down

Diversification is important for successful investing. Although I’m a fairly aggressive investor, bonds and real estate securities make up about 20% of my portfolio.

After a volatile period in the market, the value of your investments may change enough to shift your actual asset allocation away from your target. There’s no rush, but big movements in the stock market are a good reminder to give your portfolio a checkup and consider making some moves to bring your portfolio back into balance.

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