Surviving a Bear Attack: What to Do During a Bear Market

Here’s the best tip for surviving a bear attack: play dead. It will be good practice for when you’re actually dead a few seconds later. OK, maybe we aren’t talking about this kind of bear attack, but seriously…get some mace! We mean the kind of attack that happens when the stock market is down. The important thing when it comes to anything bear-related…do not panic. So, what is a bear market? A bear market is simply a period in time in which stock market prices are falling. Simple as that. A bear market is a time when most investors panic and run for dear lives like the cunning wolf above. But bear markets aren’t for panicking. In fact, there is a lot of opportunity in bear markets. As the famous investor Peter Lynch once said, You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets. So, if you’re unsure of what is a bull vs. bear market, this article will help clear up the difference. Are we currently in a bear market? Maybe, maybe not—but we’re certainly not in a bull market. I know many of you are logging into Betterment and freaking out, even if just a little. And, I’ll include myself in that list. My first foray into investing and the number is negative. But we’re all in the same boat so don’t panic, this isn’t the Titanic. The ship will right itself. But not overnight. This is why we preach buy and hold. Even if that number is down, it’s still better than having that money sitting in a savings account collecting zero interest. And remember, investing is only one piece of your overall financial picture. You can’t single-handedly cure Ebola or defeat ISIS. Unless, of course, you’re John Rambo. Those biceps can conquer anything! What you can do is focus on the other areas of your spending. Throw a little extra money at your debt, tighten up your spending leaks, take on a side hustle. If you just have to do something, then buy now! Remember, be greedy when others are fearful. If you are just