What is the best advice out there to survive a bear market? We’re currently in a bear market and the word “recession” is being thrown around a lot. So what is the best way to survive this volatility? Let’s see what the experts are saying and whether we agree with them or disagree with them.
Equity Strategist, Phil Orlando, says he expects the market to continue to decline over the summer, falling another 10%. Value stocks are predicted to do better than growth stocks and holding on to cash is still a valuable choice.
Who knows where we are at in this bear market? We could very well see another market decline, especially with rising interest rates and inflation. We could see more than a 10% drop.
Growth stocks have had their run, so it is likely that we’ll see value stocks performing better. Growth stocks have carried us out of the pandemic but the value is starting to pick up. Any equity stocks in a bear market are going to fall, however, we want to find stocks that won’t fall as hard. That’s the importance of diversification. Don’t always chase winners because it can be a recipe for disaster.
Sam Robson, writes that the bear market is a great opportunity for long-term investors. Long term is the key.
If you are twenty or thirty years away from retirement the bear market is certainly not as concerning as it is for those approaching retirement. A down market can be a great opportunity to buy stocks, but you need cash on the sidelines to do so.
Grant Sullivan says, “Be aware of making emotional decisions. Making those kinds of mistakes are a lot more costly.”
We can cost ourselves a lot of money if we make emotional decisions. Without a strategic long-term retirement plan and without an advisor, it’s much more likely to make these kinds of emotional decisions that hurt the growth of your portfolio.
Join us today as we explore these financial opinions and more!
[1:33] – Value stocks over growth stocks
[5:23] – The bear market is a great opportunity for investors
[7:10] – Be aware of emotional decision making
[13:14] – I would delay my retirement in the current environment
[17:31] – Stop digging when you’re in a hole
A Quotable Moment:
“Today, unfortunately, a lot of the news is sensationalized…”