3 Things the World's Smartest Investors Do in Every Bear Market
On June 13, 2022, the S&P 500 -- one of the most popular indexes that tracks the largest 500 U.S. public companies -- entered a bear market, dropping more than 20% from its early January 2022 highs. There are no foolproof plans that can save you during a bear market, but there are some things smart investors do to weather the storm. Here are three of them.
When the stock market enters a bear market, the first thing investors need to remember is that bear markets have shown to be an inevitable occurrence in the stock market. They've happened in the past, and assuming they'll continue to happen going forward is one of the safer bets you can make. The one thing you don't want to do in a bear market is panic. Panicking can especially be counterproductive if it causes you to sell your stocks just because of the dropping prices.
The goal should always be to buy low and sell high, not vice versa. If you're a ways away from retirement, you have time on your side to let the market rebound. Not every stock that drops in price eventually rises again, but history has shown us that the major indexes -- such as the S&P 500, Dow Jones, and Nasdaq Composite -- and the market as a whole tend to bounce back eventually.
Source Fool.com
