, are baskets of securities that trade like stocks on an exchange and promote diversification, which may contribute to lowering risk during downturns in the market.
"A bear market is a prolonged period of stock market price declines, typically by 20 percent or more from its most recent high," Roberta King, a vice president and branch leader at Fidelity Investments, told FOX Business. "In times of a bear market or market instability, a diversified investment portfolio may help minimize your risk.
"As bear markets don’t tend to last very long, it’s important to think of your long-term saving strategy and consider creating a diversified portfolio," King said.According to King, there is no one-size-fits-all approach to investing and there are different factors to consider when building your portfolio.
"Investors should choose the best option for their specific investing needs, keeping their time horizon, risk tolerance, financial circumstance and short- and long-term goals in mind before making any investment decision," said King. | Associated Press