2020 showed investors the downside of investing when markets around the world crashed in synchronicity back in March.
The reason should be familiar by now: the spread of COVID-19 that upended economies and caused untold suffering to millions.
Stock markets’ reactions were swift and took many by surprise as the market plunged by 30% or more in a short period.
Thankfully, governments around the world reacted quickly by lowering interest rates.
Many countries have also introduced stimulus packages for beleaguered sectors and mandated tenant relief measures for businesses facing acute challenges.
These quick-thinking measures helped to avert a global recession akin to the one experienced in 2009.
Despite all the measures, certain sectors are still struggling.
As we look ahead into 2021, we should expect more volatility as economies around the world recover.
Volatility isn’t new for investors.
After all, market crashes are an inevitable part of investing.
The question is, how do you protect your portfolio from losses?...