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  • And with that close the S&P 500 falling into bear market territory, officially now down 20%.

  • Contrary to popular belief, bull markets do not last forever.

  • Now we have seen in the past, when markets do reach that 20

  • And it can take up to two years on average for markets to actually get back to their original values and start moving higher.

  • Now that's the bad news.

  • The good news is that bear markets also do come to a close and there are things that you can do to protect yourselves during a bear market decline, and in fact even make some money while it's happening.

  • Now the most important thing, lesson number one: is do not panic.

  • That's the worst thing that you can do is chase the market lower.

  • You're going to lock in losses and you're going to regret it later.

  • What you can do is you can strategically take some risk off the table and raise some cash.

  • Cash, for the first time in a decade, gives you some return.

  • A three-month Treasury note actually has yield now.

  • So does a money market. So does even a plain vanilla savings account.

  • So what's the advantage of raising cash during this time?

  • So you have opportunities later.

  • You can buy things that are on sale during a bear market and make some great investments for value.

  • You want to talk about value? Let's talk about Warren Buffett.

  • Back in 2009, when everybody else was panicking, Buffett made a big investment in the Burlington Northern Santa Fe Railroad.

  • And I just basically believe this country will prosper and they'll have more people moving more goods 10 and 20 and 30 years from now.

  • And the rail should benefit, but it's a bet on the country basically.

  • He believed in America back then, and he also believed that the bear market was going to end and when it did end there was going to be a bounce back and an opportunity to make money.

  • That bet played out into one of the best parts of Warren Buffett's career, and he has made a ton of money on that over the past decade.

  • Buffett's philosophy can be summed up in just looking for value during bad times and trusting that things are going to turn back around again.

  • Remember what Buffett says: "Be greedy when others are fearful and fearful when others are greedy."

  • Think safe havens during these times: short-term bonds, commodities like gold and silver.

  • Those are all traditional places where investors will put their money for safety during times of turmoil in the financial markets.

  • If you are going to dabble in stocks, keep a few things in mind.

  • High dividend stocks are an excellent place to put money.

  • Why? Because you're getting paid to hold themalso preferred shares along the same lines.

  • And if something does happen with the company, you get paid.

  • In a bear market people are tightening their belts, so think about where they're going.

  • They're going to discount stores. They're going to Walmart.They're going to Dollar General.

  • Back during the crisis, while the rest of the market was falling apart, Walmart held it's value.

  • Why? That's where people were shopping during that downtime and investors were rewarded for it.

  • Real estate also can be a solid investment during these times.

  • Yes, prices can go down, but they've shown to be less volatile over time.

  • Also it's nice to know that even if it's not appreciated in value, you can actually live there.

  • Remember, it's not just the U.S. stock market, it's a global stock market, and over the past couple of years global stocks have gotten beaten up fairly badly.

  • So that's going to present you with an opportunity to find bargains there as well.

  • No one knows how long a bear market can last or how strong it can get, but there are ways for you as an investor to make your way through it.

And with that close the S&P 500 falling into bear market territory, officially now down 20%.


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A2 初級

ベアマーケットに投資する方法 (How to Invest in a Bear Market)

  • 199 15
    Liang Chen に公開 2021 年 01 月 14 日