Investor tips for the next bear market
Fear caused many small investors to miss the recent stock market rally. While understandable, emotional investment decisions can be very short-sighted.
Kiplinger.com offers the following tips to consider the next time we’re in the middle of a bear market:
- The stock market turns up when pessimism is rampant.
- A bear market associated with a recession almost always ends in the middle of the economic downturn.
- Don’t underestimate the power of government intervention in the economy.
- The worst are often first — at least at the outset. Stocks of companies that are small and weak, which often have had the stuffing beaten out of them during the down period, typically lead the way at the start of the bull market.
- Once you decide to get in, don’t wait for a correction — there’s no telling when it will come.