With the ongoing pandemic affecting the global economy, the stock market, supply chain, and employment numbers are dominating headlines. When the market is going through a period of volatility, it can be unnerving to see the negative effects on your portfolio. However, there are a few things you can do to take advantage of market volatility that don’t require making sacrifices in your investment portfolio.
The value of securities has waxed and waned through the pandemic. If your securities are currently down in value, you could potentially sell them at a loss in order to reduce your tax liability. With the cash you obtain from selling your securities, you may be able to find another position in the market to take advantage of.
Diversify Your Portfolio
If you have a concentrated stock position in a company from an inheritance, sale of business, or long-term employment, you may want to consider diversifying your portfolio more. If the value of your portfolio is comprised of 10% or more of one stock, you may be in too concentrated of a position. If the business you are heavily invested in goes under or suffers a big loss, your portfolio will take a … Read the rest