In last blog post, we showed some awful data - how bad an investor might experience in a bear market.
How to prepare in the bear market truly comes?
Here are some simple steps you could take -
First, large cap stocks are safer
In a bear market, the small cap stocks would be hammered the worst, so it's prudent to invest a significant portion of your portfolio in the large blue-chip companies with low debts and healthy margins.
Second, diversify into other markets
Although it's true the global markets are interconnected in this era, it still pays to diversify your portfolio to include some well managed large blue-chip foreign companies.
Thirdly, cash is king
If you don't really feel well about the future of the stock markets, it's a good idea to take some chips off the table. The best investment opportunity comes when the bear market hits. But, do you have the funds to invest when it comes?
How to prepare in the bear market truly comes?
Here are some simple steps you could take -
First, large cap stocks are safer
In a bear market, the small cap stocks would be hammered the worst, so it's prudent to invest a significant portion of your portfolio in the large blue-chip companies with low debts and healthy margins.
Second, diversify into other markets
Although it's true the global markets are interconnected in this era, it still pays to diversify your portfolio to include some well managed large blue-chip foreign companies.
Thirdly, cash is king
If you don't really feel well about the future of the stock markets, it's a good idea to take some chips off the table. The best investment opportunity comes when the bear market hits. But, do you have the funds to invest when it comes?
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