{"id":352,"date":"2020-04-01T07:27:17","date_gmt":"2020-04-01T07:27:17","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=352"},"modified":"2020-04-01T07:28:50","modified_gmt":"2020-04-01T07:28:50","slug":"strategies-to-survive-in-a-bear-market","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/strategies-to-survive-in-a-bear-market\/","title":{"rendered":"5 Strategies to Survive in a Bear Market"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>A bull market and bear market are\ntwo terms used pretty extensively in the stock market. Many investors are aware\nof both terms but their reactions towards them are quite different especially\ntowards \u2018Bear Market\u2019. It is time refers to the market situation when it is on the\ndecline. It is the time even the savviest investors fear to invest in such a market.\nFor an average investor, it is a quite intimidating time and appears\nchallenging to get out of it. <\/p>\n\n\n\n<p>Many times a bear market happens due to certain economic and geopolitical events such as the slowdown in business growth, anticipation of recession, policy changes, and rising unemployment. Additionally, there is no exact way to predict the bear market and how long it would last. These uncertainties put investors in a state of constant panicking that leads to losses. <\/p>\n\n\n\n<p>We can say that it is the time\nwhen the actual patience of an investor is tested. If fear sets in, one can see\nhis\/her entire investment wiped out in a short period. <\/p>\n\n\n\n<p>&nbsp;Today, we\u2019re here with some of the market-tested strategies that can help you to survive in a bear market. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Strategies_to_Survive_in_a_Bear_Market\" title=\"Strategies to Survive in a Bear Market\">Strategies to Survive in a Bear Market<\/a><ul><li><a href=\"#Re-allocate_your_Assets_Diversification\" title=\"Re-allocate your Assets (Diversification)\">Re-allocate your Assets (Diversification)<\/a><\/li><li><a href=\"#Rupee-Cost_Averaging\" title=\"Rupee-Cost Averaging\">Rupee-Cost Averaging<\/a><\/li><li><a href=\"#Go_for_Blue-Chip_Stocks\" title=\"Go for \u2018Blue-Chip Stocks\u2019\">Go for \u2018Blue-Chip Stocks\u2019<\/a><\/li><li><a href=\"#Stay_Put_Do_Nothing\" title=\"Stay \u2018Put\u2019 \u2013 Do Nothing\">Stay \u2018Put\u2019 \u2013 Do Nothing<\/a><\/li><li><a href=\"#Have_another_Source_of_Income\" title=\"Have another Source of Income\">Have another Source of Income<\/a><\/li><\/ul><\/li><li><a href=\"#Final_Thoughts\" title=\"Final Thoughts: - \">Final Thoughts: - <\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Strategies to Survive in a Bear Market<\/h2>\n\n\n\n<p>When the bear market begins, it\ncauses a swirl of emotions that trigger investors in making hasty decisions. As\na result, many investors lose money in the bear market. Thus, to avoid these\nbad decision making, we have brought some tested strategies to survive in a\nbear market which is below:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Re-allocate your Assets (Diversification)<\/h3>\n\n\n\n<p>The strategy you should use\nshould be focused to survive the bear market not to make way to turn your\nlosses into profits. Whether it\u2019s a bear market or recession, you will be\nsubject to losses especially when you\u2019re carrying an equity-based portfolio.\nBut, diversification of your investments can help you protect from the catastrophic\nimpact of the bear market and keep your portfolio more balanced to minimize the\npossible losses. <\/p>\n\n\n\n<p>By re-allocating your investments\nin different sectors or industries, stocks, bonds, mutual funds, and ETFs as\nper your risk-tolerance, time-horizon, and financial goals will allow you to\navoid the potential negative effects of the bear market resulting placing all\nyour eggs in one basket. <\/p>\n\n\n\n<p>Practising diversification can\nhelp in benefiting from the declining market as most investment securities are\navailable are discounted prices to invest for long-term. So, spreading\ninvestments across multiple-asset class during bear market will be like <em>\u2018Killing two birds with one stone\u2019<\/em>. <\/p>\n\n\n\n<p>This is a strategy that can help\nmost those investors who become overly aggressive in the bull market. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Rupee-Cost Averaging<\/h3>\n\n\n\n<p>If your goal is to turn the bear\nmarket into an opportunity to build up your investment portfolio to stronghold\nyour investment objectives then the rupee-cost averaging is a technique can\nserve you well! It is a technique used by many long-term investors who have the\ninvestment horizon of 10+ years to invest a fixed amount in shares at regular\nintervals. This, in turn, ensures that you get more shares when the prices are\nlow and less when the prices are high. <\/p>\n\n\n\n<p>This approach facilitates an\nopportunity to buy desired shares at discounted prices. As most stocks fall in\nthe times of bear market, the rupee-cost averaging is an approach that can be\nused by an average investor to buy more shares so that when the market recovers,\nthe shares increase in value. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Go for \u2018Blue-Chip Stocks\u2019<\/h3>\n\n\n\n<p>One way to benefit from the bear\nmarket is to invest in blue-chip stocks as these stocks are of large,\nwell-established, financially sound companies with strong business models that tend\nto perform better even in adverse economic situations. <\/p>\n\n\n\n<p>Having shares of <strong><a href=\"https:\/\/www.invest19.com\/blog\/influence-of-blue-chip-companies-in-stock-market\/\">blue-chip\ncompanies<\/a><\/strong> can ensure growth even in the bear market. Even in a bear\nmarket, the share prices of blue-chip companies\u2019 fall, giving the right\nopportunity to buy at discounted prices and add some quality stocks within your\nportfolio to reap benefits when the market starts to recover. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stay \u2018Put\u2019 \u2013 Do Nothing<\/h3>\n\n\n\n<p>If nothing works, then stop\nresisting \u2013 <em>Go with the flow!<\/em> When\nthe bear market first begins, we start feeling anxious. It is the point where\neven many savvy investors made the mistake of pulling money out in selling-off\ntheir losing investment securities. But, then what happens next is, <em>\u201cYou end up bearing loss and those who\ncontinue to hold onto their investments in dip benefits when the market starts\nto climb up again.\u201d<\/em> <\/p>\n\n\n\n<p>If aren\u2019t sure what to do in the\nbear market and out of tactics then it\u2019s time to stay put and do absolutely nothing.\nIn short, play dead!&nbsp; But, it\u2019s not mean\nto submit yourself to bear market but to not make any hasty decisions of panic\nselling. Also, do not pull your money out of your losing investments just because\nyou start seeing some other stock rising. The bear market has a habit to fool\ninvestors in giving false hints of recovery. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Have another Source of Income<\/h3>\n\n\n\n<p>It is a common myth amongst\ninvestors in believing that the bear market will lead to recession, putting\neconomic in turmoil. Well, truth is not all bear market leads to recession.\nBut, it can happen! &nbsp;So, always have a\nbackup plan to ensure that it won\u2019t affect you. <\/p>\n\n\n\n<p>Recession affects unemployment\nand money-making. Since you cannot sell off your investments for money and no\nlonger depend upon your job, having an emergency fund can benefit in providing\nwith another source of income in such difficult times. <\/p>\n\n\n\n<p>Rupee-cost averaging is great but\nkeeping some money on sidelines warm you. On the contrary, it may help you in\nfulfilling immediate cash requirements. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final Thoughts: &#8211; <\/h2>\n\n\n\n<p>Remember, similar to the bull\nmarket, a bear market is part of the business cycle. So, it is completely\nnormal! If you do not succeed to make any profit in this market then it\u2019s\ncompletely fine. You shouldn\u2019t worry about what could instead focus all your attention\nin preserving what you have. <\/p>\n\n\n\n<p>While you\u2019re at it, please don\u2019t\nbe too cautious and pull everything out of the market. This will lead you to\nnowhere. Instead, if you had invested with long-term objectives, you will have\nto start once again. Focus mainly on diversification and re-allocation your\nassets in a way that you won\u2019t bear much loss in the bear market. In doing so,\nyou can grab the opportunity to buy value shares that are available at discounted\nprices that align with your investment goals. <\/p>\n\n\n\n<p>The stock market is volatile, it\nis not supposed to stand still. The <strong><a href=\"https:\/\/www.invest19.com\/blog\/bull-market-vs-bear-market-and-their-comparative-traits\/\">bull\nmarket and bear market<\/a><\/strong> are two different sides of a single coin. Accept\nboth! <\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 4,182<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"352\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">3    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>A bull market and bear market are two terms used pretty extensively in the stock market. Many investors are aware of both terms but their [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/strategies-to-survive-in-a-bear-market\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":354,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,48],"tags":[82],"class_list":["post-352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-economy","tag-bear-market-strategies"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=352"}],"version-history":[{"count":3,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/352\/revisions"}],"predecessor-version":[{"id":356,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/352\/revisions\/356"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/354"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}