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Five Tips For Thriving In A Bear Market

How to survive scary markets

Since markets are selling off hard, here’s a few tips to keep in mind so we can all make it through to the other side.

1. The most uncomfortable thing to do during market crashes is usually the right thing. Nobody wants to sell their put options or Treasury bonds that have risen to buy stocks that seemingly only go down day after day. But given a long term horizon, that’s the right move. There will be a lot of bad news and even more fear mongering from wannabe financial experts. But keep your eyes on the objective — which is to acquire shares of profitable companies at the lowest valuation possible and then let those compound.
2. If you’re not planning to trade, then don’t look at the market. The more often you check your portfolio, the more likely you are to see red and panic trade. Only trade if you’ve already established a disciplined strategy that you’re now executing on as prices move in your favor. If you’re trading purely out of fear and emotions, stop now.
3. Diversify away from significant holdings in your company’s stock by moving at least a portion of that money into a market index or a diversified portfolio. Holding all your wealth in the shares of the company you work in is a bad idea no matter how strong your company seems — because there’s always…