Dear Readers: Here we go again. In early March, the COVID-19 pandemic brought the 11-year bull market to a crashing halt. Since that time, the markets have largely recovered but been plagued with extreme volatility, leaving individual investors frightened and confused. While every investor knows that risk comes with the territory, the recent wild gyrations are enough to make even the hardiest investors feel unsure.
So it comes as no surprise that I’m getting a lot of questions about how to protect a portfolio. People want to know if the standard advice has changed. The good news is that even though some points of execution have been fine-tuned, the fundamental principles of asset allocation and diversification remain the best ways to control risk. Let’s take a look.
