to bear markets on an average of 33%. So, down cycles are usually not as effective as the average gain of 159% of a bull market.Although no one knows for sure how exactly long a bear market might last, there are a few tips on how to weather it.As an investor, there is probably nothing anyone can do to prevent an unfavorable market condition or the economy at large. Nonetheless, there are lots of potentially great moves that one can make to protect their investments.
When this prudent investment approach is mastered, the investor’s buy price is averaged over time. That is, one can enjoy the benefits of buying the dip and also avoid investing all their life savings during market highs. After all, as dreaded as bear markets are in the investment world, they are also the best times to buy crypto assets at the lowest prices.For investors who have a diverse range of assets in their portfolio, the impact of bear markets may not be as severe.
opposite to stock prices. So, bonds are a key part of any near-perfect portfolio, giving an investor relative ease to the pain of a bear market.Some sectors are known to thrive reasonably well during market downturns, including the utilities and consumer goods sectors. And more than any other sector, they can perform to earn them the name “stabilizing assets.
So, it is important to always take your mind off the prevailing downturn, especially if you’re investing for the long term, like for retirement. Eventually, the bull markets you’ll witness along the way will outdo the bear markets.As earlier explained, there are massive risks that come along with bear markets. But, they also offer a good basis for success in the next bull run. That is, however, dependent on good strategic investment planning mixed with patience.
My only tip for myself is to not sell in any circumstance
Nice
Buy low sell high is the only thing you need to know.
Thank you for the detailed article. Really helpful. 🙏