If you compare your investment portfolio today to what it looked like a few weeks ago, you’re apt to be very unhappy with what you see. The stock market’s recent plunge has driven us into bear market territory, and that can take a toll on even the most level-headed investors.
If you’re not familiar with the term, a bear market is defined as a stock market decline of 20% or more from recent highs that lasts at least a couple of months. Often, bear markets last longer, and can even spur full-blown recessions.
But there’s an upside to bear markets, and it’s that they offer opportunities to buy otherwise expensive stocks on the relative cheap. Now to be clear, borrowing money to invest during a bear market is a risky move, and raiding your emergency fund to free up cash to invest is a terribly bad idea. But if you have extra money on hand to play around with, it pays to capitalize on the fact that stock prices have come down across the board. With that in mind, here are a few tips for investing during a bear market.
1. Look to the future
It’s hard to predict how long a bear market will last, and in some cases, they can be quite drawn out. As such, don’t invest in a bear market with the hopes of buying