Burgundy: Have You Planned for Market Corrections?

Burgundy: Have You Planned for Market Corrections? by Mathew Harrison, Burgundy Asset Management

Many global markets have slipped into correction or near-correction territory.  As I write this, the TSX Composite Index has dropped 10.4% from its early September high.  While stock market volatility isn’t much fun for private investors, those that have planned for it need not fret.  A properly specified portfolio that has taken this inevitable risk into account can weather and capitalize on the “bumps” along the way. One way to insulate your portfolio from market declines is to make sure you have properly segregated your short- and medium-term cash needs from your long-term investments.

Private investors define risk in a much different way...