In the Middle of a Bear Market…

The end of the longest bull market in history came to a screeching halt with the quickest correction followed by bear market in history. Many investors were caught off guard. Prior to a bear market, investors should:

  1. Have defined financial goals
  2. Have a diversified asset allocation according to risk tolerance and a financial plan
  3. Stress test the asset allocation
  4. Rebalance frequently to take gains
  5. Always have an emergency fund

After a bear market, investors should remain disciplined and look for opportunities.

  1. Don’t panic – corrections and bear markets are normal
  2. Continue to rebalance back into stocks after the market declines
  3. There will be windows with low mortgage rates – Look for opportunities to refinance
  4. Unemployment will rise in the coming months providing opportunities to purchase real estate
  5. A limited number of stocks may provide opportunities with all market declines
  6. Make smart decisions based on data and not emotion

It is much easier for a prepared investor to whether a financial storm.

Kevin McNab

This article is written by Kevin J. McNab. Kevin is President of ACE Wealth Partners, LLC and is a CFP®, ChFC®, and CRPC®. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views expressed in this blog post are as of the date of the posting, and are subject to change based on market and other conditions. This blog contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by ACE Wealth Partners, LLC unless a client service agreement is in place. If you have any questions regarding this Blog Post, please Contact Us. Please read our website DISCLOSURE carefully for additional information.