Wednesday 29 March 2017

If you're worried about a market correction, do this

Market declines of 10 percent or more are a regular part of investing in stocks. Here what you should know before you make a move.
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Straight talk from the money editor
Correction. That's the word on the lips of investors now, in the wake of the failure to repeal and replace the Affordable Care Act. The Dow just had an 8-day slide, the longest since 2011, as the Street weighs the likelihood of tax reform and the president's promise of major infrastructure expenditures. So what does that mean for your portfolio, especially for those approaching or already in retirement?
Basically, if you have a plan, stick with it. Corrections are a normal part of the market. "The market has been a series of panic attacks followed by relief rallies," Ed Yardeni, president of Yardeni Research, told CNBC. You need to find a strategy that won't cause you sleepless nights in the event of a major decline and consider rebalancing when your portfolio has drifted too far off its target allocations. For more cool stuff, follow me on Twitter @jimpavia.

Jim Pavia
Money Editor
@jimpavia

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