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How To Protect Your Stock Portfolio From a Stock Market Crash

The article from MSN Money discusses strategies for safeguarding a stock portfolio during a potential stock market crash. It emphasizes the importance of diversification, suggesting that investors should not put all their money into one type of asset or sector but spread investments across various industries, asset classes, and geographic regions to mitigate risk. The piece also recommends maintaining a long-term perspective, advising against panic selling during downturns as markets tend to recover over time. Other protective measures include setting up stop-loss orders to limit losses, investing in defensive stocks like utilities or consumer staples which are less volatile, and considering assets like gold or bonds that often act as safe havens during market turmoil. Additionally, the article highlights the benefits of having an emergency fund to avoid selling stocks at a loss during a crash, and it stresses the importance of regular portfolio rebalancing to ensure alignment with one's risk tolerance and investment goals. Lastly, it touches on the psychological aspect, encouraging investors to stay calm and informed, avoiding emotional decisions driven by market fluctuations.

Read the Full GOBankingRates Article at:
[ https://www.msn.com/en-ca/money/savingandinvesting/how-to-protect-your-stock-portfolio-from-a-stock-market-crash/ar-AA1ByHOV ]