Prepare for the Next Bear Market Now!

Your portfolio is like a car. If you don’t regularly maintain your car, you’re more likely to end up with a costly mess that could’ve been easily avoided, just like your portfolio. The longevity of your money can depend on your efforts to maintain your portfolio and stay up to date with your goals and needs. Despite this, many Americans admit to avoiding their financial advisor until a problem arises, treating financial advisors like an ER. Instead of meeting with them on an at-need-basis, consider meeting with your advisory team yearly and discussing your portfolio at least quarterly to implement market decline strategies, which may affect us soon.

We’ve been in a bull market for 11 years, which has been beneficial for most, but experts know this means a bear market is near. With the coronavirus’s major impact on the stock market, some speculate we’re entering bear market territory. Whether or not this is true, preparing can potentially prevent great losses. Prospering in a bear market may seem unheard of but with past analysis and proper strategies, it may be achieved. For example, the recent three biggest S&P 500 declines show gold in the positive. In these instances, gold has even risen during stock market crashes. By using the past as an example, gold seems to be a safer choice for a portfolio that cannot withstand a large loss. However, past returns don’t guarantee future gains. Instead, diversifying your portfolio may be a safer alternative. Another option is lowering risks and hanging in there. During the 2008 Great Recession, many people’s 401(k)s were nearly halved by the end of the bear market, but by 2015 those who held on had reported huge gains.

In certain cases, a bear market can be just what you need. Many people sell when they get nervous, which leads to a buying opportunity at a low price because of the abundance of availability. The same can be said for a bull market when some tend to go on a buying streak when the market goes up and are willing to buy at a higher price. Knowing this may help you excel during a bear market and so you don’t sell your best stocks because they are not doing well that month. Patience is key to surviving and recovering from a bear market.

Preparation has a lot of meanings. To RGA, preparing for a bear market means mitigating loss, creating math-backed strategies, and frequently reviewing portfolio progress. A proven way to prepare for a bear market is reviewing your portfolio with a professional and adjusting to your risk tolerance. We do this through custom loss prevention strategies and tax reduction planning to help build a portfolio that meets your concerns. Want to learn how we may be able to help you prevent huge losses during the next bear market? Schedule your free financial strategy session to discuss how we can help you protect your portfolio by clicking the link below, calling 1-800-467-8152, or email info@ronaldgelok.com

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