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How to Fight Off the Bear Market in the Second Half of 2022

Here’s a fun headline: “The Dow recorded its worst first half since 1962.”

It’s 60 years! And don ‘t think I’m picking cherries, it’s also been the worst start in 50 years for the wider S&P 500 and the worst first half. In history For the Nasdaq Composite.

But I do not think we should run to the hills yet.

One of the reasons this bear market feels so disgusting is that it started 2022. We have never been privileged to earn wider margins this year because the market has really stumbled off the gate.

But in terms of its size, it’s your bear market of the garden types. The S&P 500 is just below the 20% threshold used by officials to define the most severe declines.

It’s nice and all, but when will this nightmare end?

How long will this bear market last?

The “average” bear market can last from nine to 16 months, depending on which index and time frame you use.

Some are much shorter than that. We saw this in 2020 when COVID’s bear market ended before it started.

But some are attracted to what seems like an eternity. Inflation and geopolitical tensions – similar to what we are facing today – drove the bear market in 1973. After 21 months, the S&P 500 was 48% lower.

All this does not bode well for today’s bear market. For all we know, a new bull market could start this month.

But given the history here – and the fact that this is the first time young and middle-aged investors are experiencing a real bear market – I think it’s important to prepare for the possibility that it will get worse before it gets better.

What is being done about it?

I have never seen my friend Adam Odel sweat. If I had not met his family, I might have assumed he was a robot. No matter how crowded the market gets, a person never loses his composure.

And here’s the reason.

A person is an active trader. He does not just buy and hold and hope for the best. Like any good quantitative trader, he has rules and he sticks to them.

So when Trade goes the wrong way, it’s not destructive. He rolls with his fists because he is an expert in risk management.

A play was published from the Game Book of Human Friends:

  1. Go through each position in your portfolio.
  2. Determine your exit strategy.
  3. Write it down.
  4. And stick to it.

I recently mentioned the size of the location as a Critical risk management technique – And I’m repeating it again today. Make sure your position measurements match your risk tolerance.

I also recommend you start putting some cash aside. Do not go crazy and wipe out the whole bag or house the house. But avoid big purchases for a while if you can. Drive your old car and sit on the old couch a little longer.

Because this bear market has already created amazing opportunities. And the worse it gets, the better those chances are. You will want cash on hand to take advantage of when the moment comes.

And man Are you covered.

Its brand new Research service and elite stock selection Designed to find stocks with the potential to rise by 1,000% or more in just one year.

And this bear market is the key.

Click here to watch his “10 X Fortunes Summit” to see why.

To ensure profits,

Charles Seismore, co-editor, Green Zone Fortunes

Charles Sizemore Is the co – editor of Green Zone Fortunes And specializes in income and retirement issues. He is also a frequent guest on CNBC, Bloomberg and Fox Business.

How to Fight Off the Bear Market in the Second Half of 2022 Source link How to Fight Off the Bear Market in the Second Half of 2022

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