How to Protect Your Stock Investments During a Market Downturn

Aayushi Jain

During market downturns, protecting your stock investments is essential. Diversify your portfolio across asset classes to reduce risk.

Protect stock investments from downturns in specific sectors by including defensive assets like consumer staples and utilities.

Reallocate towards defensive assets like bonds or cash during a downturn. This can stabilize your portfolio and shield from volatility.

Stop-loss orders are a powerful risk management tool. Set predetermined prices to sell and limit potential losses automatically.

Hedging strategies like options can protect your stocks. Regularly review your portfolio to stay aligned with market conditions.

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