Dealing with Bears
1. Do not feed the bears. Resist the urge to give market predators more of your money to feast on. This doesn't mean you should avoid looking for bargains in down markets or sell certain investments at a loss to generate tax losses. Rather, it's a caution to resist impulsively giving in to ads or sales pitches for "bear-proof" investment or insurance products.
2. Don’t make any sudden movements. Trying to time the markets either to make quick profits or stem losses is nearly always a losing proposition.
3. Don’t flee in fear. Unless you absolutely need your money, the worst thing you can do is run for safety in a bear market, since you’ll lose out when the market starts to recover.
4. Protect yourself when future visits occur. Sticking with your investment strategy and financial plan may not keep future bears away, but it will help you avoid giving into emotional behaviors that could make matters worse.
Even if you follow these precautions, bear markets can still test the fortitude of even the most experienced investors. That’s why we invite you to contact us anytime, either to help you address your fears or affirm your resolve.
