Navigating a Potential Market Downturn: A Strategy for Portfolio Protection and Growth

After a prolonged period of growth, the stock market has recently declined, making some investors nervous about a potential market correction or recession. While the current dip doesn`t yet qualify as a correction, downturns are inevitable. To prepare, investors should review their portfolios and ensure they are holding strong companies with solid fundamentals, such as good management, financial stability, and a competitive edge. Waiting for the market to stabilize is not a reliable strategy, as timing the market is difficult. Instead, a dollar-cost averaging approach, where regular investments are made over time, can help mitigate risk and maximize returns in the long run.