Feeling the Pain? How Will the Markets Play out from Here?
This is a good time to prioritize your holdings in terms of their relative valuations. Any stocks that sport high valuations should be candidates for portfolio pruning. If history is any guide, you’ll be able to re-acquire these stocks at lower prices when the market finds its footing.
Investors need to know how each stock in their portfolio is valued. If the major indexes start to move lower, investors will quickly shed their stakes in the market’s highflyers. These were the first to crumble in 2008 when investors fled to the safety of value stocks.