While no one – not even the most experienced stock broker on Wall Street – can predict the next market collapse, it’s wise to be prepared if and when the next one occurs. Markets can fall due to several economic factors, such as unexpected inflation, deflation, declining economic growth or sudden shock to the financial markets, points out Forbes. Each of these economic issues require you to approach asset allocation a bit differently. Taking action before a stock market crash occurs rather than after it happens is key. This means your plan should start today. While your investments are rising steadily (hopefully you have an adequate plan in place!), that could all change at any time.
Invest in Bonds
Bonds are the solution to hedge again equity exposure; if economic growth were to suddenly plunge or any other economic factor were to take a hit, bonds will likely rise … Read more