5 Bear Market Survival Tips

5 Bear Market Survival Tips

Investors are understandably frustrated by a miserable year in which stocks are in a bear market and bonds have brought no relief. It’s hard not to be pessimistic given the long list of concerns dominating the market outlook – including inflation, central bank policy and the war in Ukraine. Despite this painful year for investors, it is important to maintain a long-term perspective while taking constructive steps that will help navigate a bear market.

1. Use an appropriate frame of reference when evaluating investments.

Investors frequently compare their holdings to the S&P 500 Index, which is not always the appropriate benchmark for an investment strategy. For example, investments outside of the US, in small company stocks or in value stocks should be benchmarked against a benchmark more relevant to the investment universe or style.

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