Every time we have a material share market sell-off, like we did in March 2020, many investors wish they could have avoided it and are often frustrated. This is understandable however, practical experience and evidence stand directly against the ability to consistently avoid these share market falls.
Risk is related to return. Over the long term, the riskier a portfolio has been along the journey the higher the return. The important point is, it’s BECAUSE of these share market falls, that shares tend to have higher returns over time.
If we could avoid these drawdowns, the share market would become a less risky place, would trade on higher valuation multiples and we’d earn commensurately lower returns.
There are however a number of strategies that investors can use to help protect a portfolio in a stock market crash.
Kindly click on the link below for more information.