Art of Investing during a Bear Market!

H6sQ...XnDT
15 Jan 2025
5

Hi Friends,
There has been a lot of talk about the market being bearish for a while. And while it has caused a major scare in the hearts of many, here's a secret that is known but often forgotten!
We are still waiting for the good times in the markets.
Investors don't need to be afraid of bear markets!
Yes of course.
At the current point in time, it could very well mean some setback in your growth and earnings. However, the key thing to remember is that markets are always cyclical and that it is not the time to panic but to take stock, re evaluate your strategies, and more often than not, be patient.
There are a few things to be aware of during a bear market and you just might start rejoicing in this period too!

  1. Understand the Bear

At this point, it is best to imagine everything as a cold winter morning. You are in your bed. Lazying. Not willing to get out bed and get moving. Yes, you are losing a few hours of the day but it'll get better once things warm up a bit. You'll gain momentum over things. That is what a bear market is. A stock market hibernation. Just wait for the cycle to complete. We don't mean slide into complete inaction, but definitely do not do what a lot of people end up doing. Panic selling. In fact, this might be the perfect time to do the exact opposite.

  1. Discounts-galore

Who doesn't like a good sale? And a bear market can give you lots of those! Think of this as the "end of all reasons why I should not get a good stock" sale. Everyone's running at a discount. The only regret you can have is not taking enough advantage of the sale! Don't let FOMO hit you in the future with all the "If you had invested... " reels! We know you are watching them even now!

  1. Desperate times, birth innovations

This is in fact the time to keep a keen eye on what the most innovative companies in the world are doing. Historically speaking, companies have always found innovative ways to cut costs, reduce wastage and avoid things that cut into their profits. This is the time when they develop templates that continue to serve them well in future time periods when the bear cycle has ended. What does this mean for you as an investor? Continuous improvement in the returns on your investment.

  1. Stock check time!

We say this in the most literal sense, take stock of your stock. A bear market can be a great point for you to review your investments. Are you habitually over-relying on one stock/sector? Are you in dearth of a promising new one? Are there opportunities for you to spread your investments to create a safety net?

  1. Patience is key

Patience is a virtue that will come in handy during this time. History has shown that bear markets are followed not only by a bounce back but by impressive growth across the board. The key is to think long term. It's the seconds before the launch of a marathon. You are in it for the long haul, not for a quick dip.
So, that's the reality of the misunderstood friendly bear. This is a time of reflection, patience and setting up growth.
And remember, like everything, this cold climate too shall end!
This shall to pass! 

Get fast shipping, movies & more with Amazon Prime

Start free trial

Enjoy this blog? Subscribe to HiRaj

0 Comments