This is the second of in a series of articles about my 5 thoughts regarding the stock market correction we are currently experiencing. Asset allocation with cash equivalents is mandatory. Why? It is mandatory because when markets go down, as they always do, you have a portion of your assets allocated to a sector that is not going down, and also because you have money available should you need it without having to sell an asset at a loss. It is easy to forget that cash and cash equivalents, such as money markets and very short term bond funds are actually an asset class. And what an important asset class they have been recently! Make sure that your asset allocation always provides an adequate amount of cash.