Should Evergrande fallout and one ugly trading week prompt you to reconsider your investment strategy?

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'We're being tested to see if our portfolio allocation is appropriate for our risk tolerance.'

Evergrande 3333, -0.44%, a Chinese real estate developer, likely hasn’t been top of mind when you consider whether or not to buy or sell stocks. But lately analysts are on edge about the company’s $300 billion in debt, which contributed to a global market selloff on Monday.

But in the meantime, the uncertainty surrounding the exact severity of the situation continues to rattle markets and individual investment portfolios — which begs the question among retail investors, especially those new to dabbling in financial markets: Is there anything I should be doing differently to dampen from the blow?

Bishop compared it to a medical stress test where a patient exercises usually at a medical facility to increase their heart rate and in doing so detect potential heart or blood-flow problems.

“The more we look at our investments, the more tempted we are to take action and want to try to do something about it when oftentimes the best strategy is not to be taking action at times like this,” he said. As MarketWatch columnist Therese Poletti wrote in July: “This is your final warning — Chinese stocks listed in the U.S. are dangerous to hold.”

 

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I’m all green with my lcid yolo...

The Market TANKS twice a year. ALWAYS HAS. April-May and Oct. November. Write it down. It's a LOT easier than trying to figure out 'WHY?'

If a bad week makes you rethink things, then you aren't actually investing—you're gambling.

Yes

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