Asked by Eric Chamberlain
Financial Adviser & Risk Manager  |  Submitted January 28, 2017

How do you protect an investment portfolio against a market crash?

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  Answers  |  1

February 01, 2017

Hi Eric,

There are a multitude of methods to address this. First let's determine if you are an investor or a speculator (gambler)?

To do this we use a 3-legged stool test:
1. Have you done a thorough analysis of the underlying?
2. Is your initial principle (money) safe? (i.e. Can you lose everything?)
3. Does the underlying generate an adequate return as per your needs?

Next, we need to determine which risks are important to you? Like reducing your lifestyle expenses, greater contribution of capital, waiting longer to dip into your portfolio, or perhaps just getting a greater ROI.
Here is a link to a great Moneytips article on risk: https://www.moneytips.com/how-do-risk-trust-fit-together

You may contact us directly to discuss in greater detail your and/or your client's specific needs. As always, no obligation.

It's not what you make; it's what you keep that determines your lifestyle.

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