Episode 28: How to Navigate a Stock Market Correction

In this episode of the Science of Economic Freedom podcast, “How to Navigate a Stock Market Correction,” we discuss the proper mindset needed to ensure you succeed during the inevitable periods of market weakness.

The fact is that corrections are both normal, and even essential, to the long-term health of financial markets. Even infrequent bear markets can and will happen, so you need to understand this, and keep these things in the proper perspective.

Topics covered in this episode include:

  • The importance of a diversified portfolio during times of market weakness
  • Why your equity exposure matters
  • How to avoid a reactionary mindset
  • The need to tune out the hyperbole of the talking heads on financial media
  • A brief history of market corrections, bear markets and ugly crashes
  • The normalcy of corrections and why their frequency shouldn’t matter
  • Guidelines on how to think about an “Economic Freedom” portfolio
  • Why following those guidelines can help you prevail during corrective phases

Make no mistake, corrections, bear markets and even crashes are going to happen. But, your mindset, your asset allocation and the diversity of your portfolio all are key to winning the long game. And in this episode, you’ll learn the right tools—both psychological and financial—to make sure your money prevails regardless of market conditions.

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