Managing Market Risk for Moderate Risk Tolerance Client

As an investment advisor, you are tasked with assisting a client who is concerned about potential market downturns affecting their portfolio. The client has a moderate risk tolerance and currently holds a diversified mix of equities, bonds, and alternative investments.

Discuss two techniques you would recommend for managing market risk in this client's portfolio. For each technique, explain how it works and why it is suitable for a client with moderate risk tolerance.