How to protect your investments from a falling stock market

Also read the following related article:

* How to protect your wealth when the JSE is falling

The stock market has started to drop over the last few weeks and, if you have investments, you might be concerned for the risks that the recent declines may have on your returns.

Stock market lows are an inevitable part of your personal finance journey; so don’t panic.

How can you protect your wealth when the market is diving down? We interviewed Galileo Capital Financial Advisor Warren Ingram.

Listen to the audio (scroll down) for more detail:

The market is down close to 4.5 percent in the last month.

Financial Advisor Warren Ingram.

I think in times like these investors need to take a review of what they are currently sitting on.

Financial Advisor Warren Ingram.

If you’re sitting on the glamour shares, or shares in the listed property sector, that have been running really hard for two years, it might be smart to take some profits out of those and relocate that money elsewhere.

Financial Advisor Warren Ingram.

However, if you've got a balanced equity portfolio, and aren't over exposed to really expensive companies, then be patient; this is part and parcel of being in the market.

Financial Advisor Warren Ingram.

The most important decision is to when managing your money is assessing the exposure that you have to shares, bonds and cash. Now would be a great time to look at the allocation of these.

Financial Advisor Warren Ingram.

Don’t set these allocations based on market movements, but rather on your own personal profile such as your age, and how soon you are looking for returns.

Financial Advisor Warren Ingram.

Half of your growth from being in shares comes from earning dividends and re-investing them over time.

Financial Advisor Warren Ingram.

This article first appeared on 702 : How to protect your investments from a falling stock market


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