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Where do investors tend to put their money in a bear market?

A upon market can be an opportunity to buy more stocks at cheaper prices. The best way to invest is a strategy called dollar-cost averaging: You inaugurate a small, fixed amount, say $1,000, in the stock market every month regardless of how bleak the headlines are. Invest in staples that have value and that also pay dividends; since dividends account for a big part of gains from equities, requiring them makes the bear markets shorter and less painful to weather. Diversifying your portfolio to include another investments, whose performance is non-correlated with (that is, contrary to) stock and bond markets is valuable too.

Finally, It is signal to have a financial advisor to “hold your hand” during market downturns, preventing you from selling out at the incorrect time based on fear or emotion.

Rebecca Dawson
Silber Bennett Financial
Los Angeles, CA

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