The Second Worst Thing You Can Do in a Bear Market.

LT Site Icon

We’ve discussed Bear markets in great detail and how it’s important to remember that they are a normal part of the market cycle. This month’s client corner examines the worst things a long-term investor could possibly do in a bear market.

The first is to sell out of a well-diversified portfolio of quality equities. Nobody enjoys watching the value of their portfolios go down. However, it’s important not to let panic sway your decision making. A market decline should be viewed as a potential opportunity to put money to work for the long run while stocks are trading at a discount.

The second worst thing is the terrible temptation to hold back cash that needs to be invested, trying to catch a market bottom. We’ve said this again and again, it is imperative that you focus on time in the market vs. timing the market. Statistically, it is impossible to time the market from an entry and exit perspective and result in better returns than one that takes a buy and hold type of approach.

Ensure you make your investment decisions based on your long-term goals and objectives. Invest in stocks that you want to own for the long run, and don’t sell them simply because their prices have gone down in a bear market.

We hope you enjoyed this month’s Client’s Corner. Please do not hesitate to reach out if you have any questions or feedback.

Thinking about hiring a professional to help you implement a long-term financial strategy? We would be more than happy to set up a 30-minute discovery call to get a better understanding of your unique situation.

Get In Touch With LT Wealth

Read The Full Commentary

If you do not have access to our monthly email, you can request it here:

Your privacy is fully protected. By filling out this form to request this month’s commentary, you give explicit permission for LT Wealth Management Partners to email you to deliver our e-newsletter. It is important to note that your consent acknowledges agreeing to receive our newsletter knowing that your name and email may be stored on external servers outside of Canada. 

Share on facebook
Share on twitter
Share on linkedin
Share on email

Nine Recessions

In this month’s client’s corner, Nick Murray discusses the eight, almost nine, economic recessions that have taken place in the United States since 1970.

Read More »

Looking to build sustainable, long-term wealth?

We can help.

(604) - 416 - 2505

LTwealth@raymondjames.ca

555 Burrard St, Vancouver BC

Article Disclaimer:

Links provided to other internet sites are for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd. endorse, warrant or guarantee the products, services or information described or offered at these other sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Raymond James Ltd. adheres to. Information in this article is from sources believed to be reliable, however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views are those of LT Wealth Management Partners and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision.