InvestorQ : I see market uncertainty but am not sure if it goes down. What to do?
Sakshi Malhotra made post

I see market uncertainty but am not sure if it goes down. What to do?

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Ria Jain answered.
3 years ago
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When you take protection for your portfolio or hedge you risk, you are only providing against a likely risky situation in the market. You are not trying to profit on the downside. So don’t, give too much importance to whether the market will go down or not. What matters is that the risk is putting your portfolio in danger and at that point you must buy protection notwithstanding the costs. This is a very important rule for investors and also for traders. There are a lot of domestic and global news flows that can infuse uncertainty into your portfolio strategy. When in doubt, you must seek protection. It may cost and you need to be clear that the cost is justified in the long run. After all, it is better to be safe than to be sorry!

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