How do you prepare for a bear market?

Bear markets are often accompanied by an economic recession and high unemployment, but bear markets can also be great buying opportunities while prices are depressed.

Discussion (15)

What are your thoughts?

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ZhiHao

25 Nov 2021

If got war chest, prepare to fire bullets.

If fully invested, delete all apps related to the market 🤪

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HC Tang

Edited 25 Nov 2021

Financial Enthusiast, Budgeting at The Society

Face a bear? RFYL (run for your life)!!!

Just kidding I think we should:

1) Bull - Stay with the bull if bull continues to run.

2) Bear - Prepare more $ now and when bear comes , load up more good fundemental stock at lower price sale! It's sale time.

At the side, keep doing your full time job or side gig that gives you monthly incomes and savings to buy stock at sale when bear comes.

Do your research properly, buy those you believe it strongly and understand and stay with it riding the bull or bear.

You'll be the ultimate winners

Cheers.

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CTKS

24 Nov 2021

Great question, I would prepare myself financially and mentally.

Financially - have a sufficient emergency fund so that I do not have to liquidate my holdings at a loss and have a decent amount of cash to deploy into desired companies

Mentally - prepare myself to stay the course, don't panic sell and slowly accumulate more shares at a cheaper price

There is this page in the intelligent investor that talks about the only news you will need during a bear market is one with a headline that read "SALE! STOCKS HAS BECOME CHEAPER YET AGAIN AND ANALYSTS ARE FORECASTING THAT THEY WILL BECOME EVEN CHEAPER IN THE MONTHS TO COME". I think this is something all investors should bear in mind :-)

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