5 Essential Things to do in a Bear Market

Amar Pandit , CFA , CFP

I had written 2 posts in March 2020 headlined “Embrace the Bear” and “Embrace the Bear – Part II”. While these are excellent (based on what readers told me) and relevant posts even today, I thought of sharing some essential wisdom in a Nano format.

  1. Go on a Media Fast. There will be plenty of garbage circulating now. Acting on such pessimism might seem like the right thing to do but it will be injurious to your long-term financial health.
  2. If you are getting anxious, revisit your investment policy or plan with your financial professional. Read this Nick Murray quote again (I have shared this before) – “All Successful investing is goal focused and planning driven. All failed investing is market focused and event driven.
  3. Stay Invested.
  4. Continue your Monthly Investments.
  5. Keep Buying if you have Surplus money.

While I said 5, the next one is the mother of all these 5.

  1. Never Forget these 5 Essential Things.

Your success as an investor is a function of how well you do these 6 essential things.