This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

2020 has been a wild year for investors. The stock market soared to new highs, only to plunge in the wake of the coronavirus outbreak. After hitting bottom, markets have soared upward in a quick recovery, and at least a couple of stock benchmarks have reached new records once again.

When the initial phase of the COVID-19 outbreak led to one of the fastest bear markets in history, the best advice investors could follow was not to make any rash decisions with their investments. That advice served those who followed it well, as the bounce has helped many investors recover much or even all of their losses. Staying pat was hard, though, if you felt blindsided by the coronavirus crisis and suddenly became aware that the risk level in your portfolio was too high.

Fortunately, you now have your chance to reconsider your investing strategy calmly and objectively. If the bear market was a wake-up call that you had too much risk in your portfolio, then now that stocks have recovered most of their lost ground, you can adjust your asset allocation  without doing major damage to your long-term financial prospects.

Letting it ride

The 2010s were one of the most successful decades ever for stock market investors. The right strategy to follow was to get money into the market whenever you could, especially taking advantage of periodic dips to add to your positions. With very few extended downward moves in the market, it was easy to think that owning stocks didn’t really involve much risk.

However, the big gains from the 2010s set up some investors for a surprisingly painful shock. Not only did the coronavirus bear market remind investors that big downturns could happen, but it also came at a time when many investors hadn’t rebalanced their portfolios for a long time. As a result, many people’s stock allocations had risen above their past levels, leaving investors even more vulnerable to the stock market downturn.

Add to that the fact that yields on bonds and other fixed-income investments have fallen to such low levels that the income they pay is insufficient for most investors’ needs. That pushed people into dividend stocks, boosting overall allocations to the stock market and further adding to risk.

Avoiding the kneejerk reaction

Many people realized only after the fact that they were uncomfortably overexposed to stocks in their investment portfolios. The worst possible way to respond would have been to sell at the lows. With markets down as much as 30% between mid-February and March, selling out would have meant taking huge losses. Moreover, you would’ve missed out on the nearly 40% gain in some stock market indexes since those lows, repeating a mistake that millions of investors have made in past crashes and bear markets.

If you successfully held your ground and stuck with your strategy, you’ve probably seen a nice recovery in your portfolio. But that doesn’t mean that you should forget about your concerns regarding your risk tolerance. If you now know that you’re not inclined to deal with a drop of the magnitude we saw in early 2020, then you should adjust your investing strategy to be more conservative. Moreover, you can make those adjustments now, because reducing your stock portfolio won’t result in anywhere near the losses that you would’ve locked in just a couple months ago.

2 ways to get your portfolio in line

Investors have a couple of things they can do to adjust their portfolios to reflect their new risk tolerance. For some, it’ll be enough simply to rebalance your investments, getting your allocations to stocks, bonds, and other asset classes back in line with their long-term targets. Even though many stocks haven’t fully recovered their losses from the bear market, you might still find yourself needing to reduce your stock positions to rebalance effectively if it’s been a few years since you last did so.

The more extreme move is to reduce your target stock allocation. That will necessarily involve making sales and exchanges of various investments, with the usual tax and cash flow consequences. For many, the peace of mind you can get from reducing the future volatility of your overall portfolio is worth the losses you’ll lock in — especially since those losses are probably much smaller than they were back in March or April.

Don’t wait

Stocks can do anything in the short run. Waiting to take action could let your portfolio recover further, but it could also leave you vulnerable to another leg lower if it comes.

If you now realize your risk tolerance for stocks is lower than you thought it was, now’s the best time to adjust your portfolio to reflect your new needs. That way, you’ll be better prepared to deal with whatever comes next — and more likely to avoid mistakes that could cause long-term damage to your finances.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Motley Fool contributor Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post If you need to protect your portfolio, do this now appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Musgrave Minerals Ltd (ASX: MGV) share price is starting the trading week off with a bang after the small-cap ASX miner revealed bonanza grades in near surface drilling.

Musgrave Minerals is an active Australian gold and base metals explorer. Its cornerstone project is the Cue Gold Project in the Murchison Province of Western Australia. The company also has a big footprint in the Musgrave Province, one of the least explored exploration frontiers in the country.

For a bit of background, the Cue Gold Project hosts total resources of 6.45 million tonnes at 3.0 grams per tonne (g/t) gold for 613,000 ounces. This includes the Break of Day deposit (868,000 tonnes at 7.2 g/t gold for 199,000 ounces of contained gold) and the Lena deposit (4.3 million tonnes at 2.3 g/t gold for 325,000 ounces of contained gold).

Why the Musgrave Minerals share price is surging

This morning, Musgrave reported assay results for a further 7 reverse circulation (RC) drill holes from the current program at the new Starlight gold discovery.

This follows the announcement of assay results for the first 12 RC drill holes last week which sent the Musgrave share price flying.

Significant intercepts from today’s announcement include:

• 42 metres at 77.3 g/t gold from 30 metres, including:
  • 18 metres at 179.4 g/t gold from 30 metres
• 61 metres at 12.7 g/t gold from 76 metres, including:
  • 6 metres at 44.6 g/t gold from 76 metres
  • 21 metres at 23.6 g/t gold from 106 metres
• 22 metres at 21.0 g/t gold 2 metres, including:
  • 9 metres at 49.2 g/t gold from 8 metres
• 9 metres at 16.5 g/t gold from 225 metres, including:
  • 3 metres 47.6 g/t gold from 225 metres
• 4 metres at 48.2 g/t gold from 85 metres
• 2 metres at 37.7 g/t gold from 74 metres

The Starlight link-lode is located at the Break of Day deposit within the Cue Gold Project. The intersections in all drill holes sit outside, but in close proximity to, the current resource at Break of Day.

The drilling is focused on infilling and extending the new high-grade lode where mineralisation has been intersected over a strike of more than 115 metres.

Commenting on the results, managing director Rob Waugh said:

“These are amazing gold grades to see in near surface drilling. Our deepest holes to date are still in high-grade mineralisation at 200 vertical metres where Starlight remains open down dip. The bonanza grades near surface will have a significant positive impact on future development at Break of Day.”

The current reverse circulation drilling program at Break of Day is now approximately 80% complete and consists of more than 36 holes for around 7,000 metres.

Assays have been received for 19 holes to date, with further assays expected within 2 weeks.

In addition, a diamond drilling program at Starlight to test depth extensions to the Starlight mineralisation is due to commence this week.

After flying 45.83% at the open, the Musgrave Minerals share price is currently sitting 39.58% higher at 33.5 cents per share. This takes its market capitalisation at the time of writing to around $155 million.

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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At the weekend I looked at how investments of $20,000 in a number of ASX shares fared over the last 10 years.

Given the success of these investments, this morning I thought I would look at a few shares which I feel investors ought to consider investing $20,000 into today for the next decade.

Here why I think these three ASX shares could provide strong returns for investors:

Altium Limited (ASX: ALU)

I think this electronic design software platform provider could be a great place to invest $20,000 with a long term view. This is due to Altium’s exposure to the Internet of Things (IoT) boom. This rapidly growing market should drive strong demand for its offering in the future as the majority of these devices require software like Altium Designer during the design process. Management appears confident in its outlook and is aiming for 100,000 subscriptions by FY 2025. This compares to the 50,000 subscriptions it is targeting this year. Combined with its other growing businesses, such as the Octopart search engine, I believe the future is bright for Altium.

Pushpay Holdings Group Ltd (ASX: PPH)

Another company which I think has a very bright future is Pushpay. It is a growing donor management platform provider for the faith and not-for-profit sectors. Pushpay has been growing at a rapid rate over the last few years thanks to the increasing adoption of its platform by churches in the United States. The good news is that management expects its strong growth to continue in FY 2021. It recently revealed that it expects to double its operating earnings in FY 2021. But it doesn’t expect its growth to stop there. The company is aiming to capture 50% of the medium to large church market in the future. This is a US$1 billion revenue opportunity and many multiples of its current revenue.

Ramsay Health Care Limited (ASX: RHC)

A third ASX share to consider investing $2o,000 into is Ramsay Health Care. I think the leading private healthcare company would be a great long term option due to the quality of its global business and its positive long term outlook. The latter is thanks to the ageing populations tailwind, which is expected to drive very strong demand for healthcare services over the next couple of decades. And while trading conditions are tough right now, I believe it is worth dealing with the short term pain for the potential long term gains.

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• How I would invest $50,000 into ASX shares right now
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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