The market's best days occur immediately following its worst

Crystal Mirkazemi |  News – Vancouver | March 30th, 2026

Editor: Karalee Greer
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Best days occur immediately following its worst. The most dangerous move in a downturn is often an emotional one just like the history shows that some of the market's best days occur immediately following its worst. If your portfolio is built on a foundation of quality assets and a timeline that spans years rather than weeks, the "noise" of a downturn is often just that—noise.

However, "staying the course" doesn't mean standing still. Protecting your portfolio is about building a structure that can bend without breaking. Here is how to approach defensive planning in today’s market.

1. The Power of "Non-Correlated" Assets

True diversification is about more than just owning different stocks; it’s about owning assets that don’t move in the same direction at the same time.

Fixed Income & Bonds: In 2026, as interest rates begin to stabilize, high-quality government and corporate bonds are regaining their role as a "buffer." When equities drop, these reliable income-generators often hold their ground.

• Real Assets: Commodities, infrastructure, and real estate often operate on different cycles than the stock market. Gold, in particular, remains a classic "safe haven" during times of heightened global uncertainty.
• Liquid Alternatives: Strategies like "Long/Short" equity or "Low Volatility" ETFs are designed to capture some market upside while specifically limiting the "drawdown" (the percentage lost from the peak).

2. Strategic Rebalancing: The Automatic "Buy Low"

One of the most effective ways to protect a portfolio is a disciplined rebalancing schedule. When the stock market is booming, your portfolio can become "top-heavy" with equities, leaving you overexposed right before a crash.

• The Mechanism: Periodically selling a portion of your winners (stocks) and moving that money into your underperforming defensive assets (bonds or cash).
• The Result: This forces you to sell high and ensures you have a "dry powder" reserve to buy quality assets when they eventually go on sale during a downturn.

3. Embracing "Volatility Drag" Awareness

Large losses require much larger gains to recover. For example, a 20% loss requires a 25% gain just to break even, but a 50% loss requires a staggering 100% gain.

To mitigate this, many investors in 2026 are using Dollar-Cost Averaging (DCA). By investing a fixed amount at regular intervals, you naturally buy more shares when prices are low and fewer when they are high, smoothing out the emotional and financial impact of a sudden dip.

Whether driven by geopolitical shifts, central bank policy adjustments, or the natural "cooling" of high-growth sectors like AI – volatility is the price of admission for long-term gains.

In the current investment landscape, market downturns aren't just a possibility, they are a structural part of the journey.

Article #016

Crystal Mirkazemi | News – Vancouver

My mission is to empower you to think big and build solutions for your family and business. Every milestone of life's journey is a chance to appreciate a financial plan. As I always say: Your most significant asset to be independent lies in your attitude towards money.

LinkedIn: https://www.linkedin.com/in/crystalmirkazemi/

Contact me here: wbn.cwc@gmail.com

Editor: Karalee Greer  LinkedIn: https://www.linkedin.com/in/karalee/ Subscription to WBN and being a Contributor is Free

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