With the recent volatility in the market, it is a good time to review our strategies of how we are going to approach the market downturn which is part and parcel of investing. During the past few weeks, I have also received a few inquiries asking how I am going to approach the correction or potentially a bear market so I thought I will share it in this post. Please do note though that the strategy aforementioned is exclusively based on my preference and circumstances so it will differ from each person to the next.
I have previously mentioned in my post that having cash as part of the overall portfolio is a crucial part of investing. Even though they have relatively returned very poor returns in the past few years, it definitely beats using them to buy companies which are overvalued. Those who are guilty of doing so ......