That said, if the drop does turn out to be more prolonged than expected, things get more complicated. Holeman recommends that investors be sure to re-balance their portfolios. “When market volatility picks up, your portfolio can get unbalanced, which means you may be taking more or less risk than you think.”
He also advises tax loss harvesting, “a time-tested strategy that uses market losses to help save taxes.” It entails selling an investment in order to generate a loss that will ultimately maximize your tax-return.
For now, however, amid what looks to be a normal bull-market correction, the consensus is that you should not make any rash decisions.
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