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With this greater insight, we can go over diversification options for your portfolio that blunt the impact of downturns while putting you on track to achieve your financial objectives. Having conversations about risk tolerance, as mentioned above, helps us to better understand your investing style and what's most important to you. Stay Diversified Downturns offer case studies in how different asset-class and sector exposures can help to insulate your portfolio. Together, we can develop a plan that still achieves your goals, despite potential headwinds of lower returns. Statistically speaking, it would be prudent to expect lower returns in the future. stock and bond markets have posted remarkable returns in the past few decades. We can explain options for removing high-cost investments from your portfolio in ways that minimize the taxes due from their sale. Control What You Can: Costs Expenses eat returns, and their bite is particularly painful during market corrections. Together, we can figure out the balance of stocks and bonds best suited to your comfort level with risk and other personal circumstances. Revisit Your Asset Allocation If you happen to be near retirement or in retirement, or if you simply lose sleep over downturns, you may need to reevaluate your risk tolerance. Turning off the financial news might be smart if it keeps you from making mistakes based on emotional decisions. Tune Out The Noise It's ok to not check your portfolio balance when the market is falling. Here is a list of suggested actions to consider - which historically have resulted in helping to weather market lows. It's hard, because one of the most unsettling aspects of market downturns is the fact that they are out of your control. Making decisions out of fear (or any other emotional trigger) rarely leads to successful long-term outcomes. When the stock market declines, the resulting steady drumbeat of negative news reports can drive many people to flee the markets.
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