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Always be prepared for a market downturn from "summary" of The Intelligent Investor Rev Ed. by Benjamin Graham
As an investor, it is essential to anticipate and prepare for the inevitable market downturns that occur in the stock market. These downturns are a natural part of the market cycle, and they can have a significant impact on your investment portfolio if you are not adequately prepared. By being aware of the possibility of a market downturn and taking proactive steps to protect your investments, you can mitigate potential losses and even take advantage of opportunities that may arise during these challenging times. One way to prepare for a market downturn is to maintain a diversified portfolio that includes a mix of different asset classes, such as stocks, bonds, and cash equivalents. Diversification can help spread risk across different investments and reduce the impact of a market downturn on your overall portfolio. Additionally, having a mix of assets with different risk profiles can help you weather market volatility and provide a mo...
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