How to Invest in a Bear Market
According to the analytics platform GlobalData, the value of the US stock market will fall by $7 trillion by 2022.
It's understandable to be anxious in such market conditions. However, selling assets when their values are at or near rock bottom is almost never a good idea. It is also not the time to go on a buying frenzy in the hopes that prices will rise in the near future.
Short-term uncertainty that is expected to grow over time causes volatile markets. Selling into those markets may imply that you are acting on information that is not in line with your long-term investing objectives, says Colleen Cunniffe of the Vanguard fixed-income group.
When it comes to handling a down market, here's what experts recommend.
Avoid pulling your money out
Invest based on your own needs
Understand the risks of investing in a down market
Take advantage of sound opportunities
Focus on the long-term
