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Focus on areas within your control, such as minimizing costs that can erode returns. Costs are particularly burdensome during market downturns, and optimizing them can aid in cushioning against losses.
Set Realistic Expectations
Markets do not offer steady returns annually, and investors must remain grounded in their expectations. Understanding the cyclical nature of markets is crucial for longevity.
Diversify Strategically
Investing in a mix of asset classes—stocks, bonds, and international markets—serves as a protective strategy against downturns, with bonds often stabilizing portfolios during equity sell-offs. International investments may also present opportunities for positive performance amid domestic declines.