The best way to prepare for a market correction is by putting money on companies that can deliver growth, one asset manager told CNBC, as talk of a potential stock market crash grows.
In this scenario, investment strategy should focus on the quality of the companies, Eric Ervin, chief executive officer of Reality Shares — an investment platform — told CNBC Wednesday morning.
"Trim the junk out of your portfolio and hold on to that high-quality growth component of the portfolio," he said.
"These are the companies that are going to be the healthiest in a portfolio managers' decision tree when we do get a correction; these are the last companies to be sold. You'll want to sell the low-quality companies first and then keep the high-quality companies," Ervin told CNBC.