Smart portfolio management is all about risk management, not market timing. Therefore, preparing your portfolio for a new bear market doesn’t mean jumping from stocks to cash, where you will miss out on the gains that come at the end of a bull market. In fact, the smartest tactical moves to make when the market appears to be heading in a new direction only involve a few adjustments to balance the objectives of maximizing return and minimizing risk.
The Bear Market Portfolio Guide
To put it simply, our strategy is to keep the best and get rid of the worst. As the bull market matures, it’s a good idea to lock in some gains and reduce market risk. The first step is to identify and remove exposure to the riskiest fund types.
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