5 Time-Tested Tactics in Bear Markets
As COVID-19 continues to run its course, it gives us another chance to learn from the past and prepare for the future. Yes, that could refer to a lot of things, but let’s assume it is the stock market. March was terrifying if you were an investor. Not only were we terrified to go outside during a pandemic, we also had to watch the stock market move at thousands of point clips daily.
When the market experiences prolonged price declines, it’s referred to as a bear market. Bear from its recent high — not exactly what we like to see. It’s important to understand that a bear market is not a recession. A recession is a slowdown of economic output that is measured by gross domestic product over two consecutive quarters. While bear markets can often lead to recessions, they don’t always. Recessions deal with the economy and bear markets deal with stock markets. Remember that the stock market is not the economy — these terms are often used interchangeably and they shouldn’t be.
