Thread by @MyWallStHQ

How to handle an inevitable #stockmarket downturn 👇

🧵

Friday the 13th is typically considered quite an unlucky day, but for many investors, the past few weeks have probably felt pretty devoid of any real luck 😒

With that in mind, let’s take a look at some of the best ways to deal with an inevitable market downturn 💥

The first, and most important piece of advice, is not to panic — the market will eventually recover.

If you panic and begin selling off, you could rob yourself of potential long-term gains 😬

Between 1854 and 2018, there were 33 recorded major recessions in the United States.

Every single one of them saw the market bounce back past previous highs.

Once you’ve avoided panicking, it’s time to collect your thoughts. Specifically, consider your investing timeline and reevaluate your current positions.

Now with your thoughts focused, you can now look to take action by going on the defensive.

First, assess your portfolio for diversity 😎

You should look to diversify in multiple ways if possible: geographically, by market cap size, and through different industries 🏭

Next, consider rotating into some defensive stocks 🛡

Certain industries tend to do well in an economic downturn, such as energy or healthcare.

Owning strong-performing stocks in these industries could help mitigate any wider market issues.

Once your portfolio is properly secured against a further downturn, you can consider making some purchases 💰

By making calculated moves you could secure valuable stocks at a discount.

As the ‘Oracle of Omaha,’ @WarrenBuffett, once said:

“Be fearful when others are greedy, and greedy when others are fearful.”