For a more detailed exploration of “What to Do in a Bear Market” Click here for the full commentary.

With the U.S. stock market officially dancing in and out of bear market territory, Senior Wealth Advisor, Bob Carnegie, CFA, CFP®, CEPA, outlines what you can do when staring that bear in the eyes. While staying calm and staying the course are highly recommended, it doesn’t necessarily mean sitting idle. As he points out, there are some unique opportunities to consider in this bear of a market which can include:

• Reassessing Current Financial Plans
• Increasing Contributions
• Roth IRA Conversions
• Accelerating Gifting
• Buying Bonds
• Harvesting Tax Losses
• Keeping Disciplined
• Diversifying

Much like an adrenaline-inducing animal encounter, bear markets can be scary. Volatile stock prices accompanied by unsettling pundit commentary and flashing red banners make it quite difficult to stay patient and calm. For those who can, however, the historical track record for “staying the course” speaks for itself. And that is because despite inevitable poor market and economic dynamics during short-term periods, businesses, new and old, will continue to innovate, grow, and strategically steer themselves through trying times, only to be that much stronger on the other side. 

Bottom line:  

This is not the first bear market, nor will it be the last.

Proper planning, diversification, and discipline are pivotal in helping to eliminate ill-advised, emotional, and impulsive decisions. Unfortunately, humans are emotional beings and thus, prudent investing does not always come naturally to us. While it is important to think about how to make it through this bear encounter, it is also important to seize opportunities it creates and prepare for the next market cycle. Remember, historically, the stock market has rarely declined over a 10-year time period, and over a 20-year time period, never.

Disclaimer: The information in this paper is for information purposes only and should not be interpreted as legal, tax or financial advice. Always consult your CPA/tax advisor/attorney (or reach out to us;) to discuss your specific situation. Past performance is no guarantee of future results.