How to prepare for future uncertainty

Whether the expansion continues on for a while or comes to end in the near term, it’s important to remember that it’s normal for the markets to move in cycles, with periods of expansion and recession. And historically, the markets have rallied and risen higher after times of decline. That being said, if you’re nervous about what a possible downturn in the near term could mean for your portfolio, consider the following four steps:

1. Maintain a properly diversified portfolio that effectively represents your true views on risk.

2. Focus on owning quality investments, which may include well established stocks and highgrade bonds.

3. While a market pullback can be a painful thing, every downturn comes with potential opportunities. While the investments you hold may be dropping in value, the investments you want to buy could be getting cheaper, making it a good time to consider buying.

4. How long you have before you need money is a key factor to how well your portfolio may withstand future uncertainty. If you have decades before you need to withdraw (such as your retirement savings), it’s possible that volatile markets could actually work in your favor, due to the power of compound interest. On the flip side, if you need money in the near term you may want to consider reducing your risk or selecting investments with more downside protection.

5. Talk to a financial advisor who can assess your Bronwyn L. Martin is a Financial Advisor Chartered Financial Consultant with Martin’s Financial Consulting Group, a financial advisory practice of Ameriprise Financial Services Inc. in Kennett Square and Havre de Grace, Md. She specializes in feebased financial planning and asset management strategies and has been in practice for 18 years. To contact her visit www. ameripriseadvisors.com/ bronwyn.x.martin