Ways to Protect your Investment Portfolio from a Market Crash

Uncertainty could pass of as the second name of the market today, in fact life itself has become so uncertain owing to the challenges that people are facing all over the globe in all aspects of life. That said, it is obvious that as a business person you are constantly looking for ways to protect your investment portfolio from a market crash; this article is dedicated to a help you in that quest.

Market conditions have been most volatile in the beginning of the last decade; there are millions of companies and employees who’ve been affected by the fluctuations in the market and we have no one to blame. It is in your hands to research the market adequately and protect your investments in order to survive the market odds.

A stock market crash can be lethal to start up companies and well established ones alike, this means one must track market changes and constantly keep oneself up to date about various emerging financial trends. One’s investment portfolio reflects one’s business sense and a crash in the market does no good for the same. Whether we are talking about cash investments or bonds, they have to be secured in such a way that the business does not suffer a bad history of debts or deliverables.

Ways to protect your investment portfolio from a market crash:

It is important to understand that the market is capable of showing up or going down based on the actions of a few investors. Here are a few tried and tested ways to protect your investments from the eventuality of a crash in the market. Ideas discussed herein are endorsed by market experts however discretion is advised in terms of analysing one’s business situation before applying these methods:

• Research your investment portals before you invest – this is critical to ensure that you know every single clause pertaining to your investment portal and there are no surprises in store for you

• Avoid investing only in high risk investments – make investments in a balanced manner, invest in low, medium and high risk funds equally

• Purchase adequate government bonds as they are protected from market crash

• Understand the performance of funds for a minimum of the last ten years before investing, if you do have to invest in new funds, understand the market implications first

• Keep a track of market indexes from US, Europe and Asia to understand the potential of an investment. Withdraw from the investment if all three indexes show a trough

• Keeping one’s balance high in a money market account will ensure minimum returns and be of aid during a market crash

• Keep away from speculative technology stocks as a safety measure

With the above suggestions in mind you should be able to avoid a market crash shock and also plan for future investments with more discretion. As mentioned earlier, the investment portfolio you sport reflects your business sense, unless you protect your portfolio from crashes, the value of it remains low in the eyes of investors and consumers alike.