While we may not be able to tell how long the lull in the stock market will last, there are some things you can do to protect your financial future.
Hold More Cash
As always, when things get nutty in the markets cash is king. A healthy cushion in bank commercial deposits or money market funds will let you ride out the slump without having to sells assets at fire-sale prices. A cushion will also put you in position to invest when the downturn’s bottom is in sight — and that could come sooner than you expect. Tread slowly if you do jump back in, though, and before you go bargain hunting first build your cash position to at least a year’s worth of living expenses, longer if you are retired.
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