| Broad market corrections are bound to happen. As such, it’s important to set up your portfolio in such a way that includes a buffer against volatility. Constructing a portfolio isn’t just about random diversification by taking positions in sectors that you like or understand.
While it’s okay to start like that (everyone has to start somewhere), over time it’s important to start building layers of protection around your core portfolio so that when there is a broad market correction you are partially or fully covered. It doesn’t make sense to start selling long-term positions that form your portfolio just because there is market volatility or a correction...............................................Full Article: Source
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