Get Your Portfolio Ready for Volatility - And for When It Ends
The dramatic rise in volatility in February and swift 10% correction in stock prices caught many investors flat-footed. After all, the Standard & Poor's 500-stock index went more than a year without a 5% pullback, so it was shocking to see a 10% correction in just nine trading days.
Aside from causing stomach-churning drops - and rallies - it drove home the point that investors always need a plan to protect themselves. It is always smart and never too late to make certain adjustments for when the good times eventually end.
Even now, after a snap-back rally, it is not too late to think about what should be done to protect against more downside volatility, as well as prepare for a continued bullish reversal that sends stocks higher.
During the financial crisis of 2007-09, investors suffered steep losses as the S&P 500 lost 57.7%, falling from its October 2007 peak of 1,576.09 to its final bottom of 666.79 in
