Market History
Equity market downturns are chaotic environments that are rarely short-lived—the best advice is to be prepared.
Managing Through Equity Market Downturns
Portfolio Liquidity
Investors that have inflexible spending needs and large allocations to illiquid assets should plan how they will tackle the next downturn’s liquidity challenges.
Diversification Challenges
As investors prepare for the next equity market downturn, they should take a closer look at the benefits and limits of diversification.
Behavioral Roadblocks
Bear markets often trigger emotional responses that can sometimes lead investors to act contrary to their long-term objectives; as such they need simple strategies to help overcome their worst instincts.
Playing Offense
Investors should review existing policies regarding portfolio rebalancing and tactical asset allocation and ensure they have a strategy to play offense during the next downturn.