Unshakeable

Always be prepared for market turmoil

Instructions

Allocate your assets wisely instead of looking for market certainty.
Ask yourself: What asset classes offer me the greatest chance of moving from where I am today financially to where I need to be? Start by clarifying your current financial position and how much money you’re able and willing to save. Then get clear on how much money you think you’ll need within a given time frame, say, in 20 years. It's better to consult a financial advisor in this process unless you’re already knowledgeable in this field.
Make index funds the foundation of your portfolio.
Index funds offer you broader exposure to various asset classes at a low cost and with minimal taxes. Pick an index fund that contains a combination of large-cap, mid-cap, small-cap, and microcap stocks. This ensures that your investment is protected even if one part of the market collapses.
Maintain a financial cushion.
Make sure you have enough income-generating assets, such as bonds so that you can sell them to raise quick cash. This way, you can avoid selling your stocks at a loss just to raise money for your short-term needs.
Rebalance your portfolio regularly.
If your original asset allocation is 60% stocks and 40% bonds, then maintain that balance even during a market downturn. If the stock market crashes and your portfolio goes down to 45% stocks and 55% bonds, sell some of your bonds to buy more at a discounted price. Check your portfolio at least once every year to ensure that your preferred asset allocation is maintained.