Chapter 23
Ten Ways to Profit in a Bear Market
IN THIS CHAPTER
Doing research on good stocks, dividends, and bond ratings
Considering shorting and margin
Looking at call and put options
Exercising patience
Bear markets are brutal when they hit. Ask any stock investor who was fully invested in stocks during 1973–1975, 2000–2002, 2008, or the brief-but-brutal month of December 2018. As of January 2020, the market is roaring at new highs, so a bear market may seem like it’s hibernating, but it could come without much public notice and devastate unprepared investors. You relieve the pain from the carnage by vigorously pulling your lower lip up and over your forehead to shield your eyes from the ugliness. Fortunately, bear markets tend to be much shorter than bull markets, and if you’re properly diversified, you can get through without much damage.
For nimble investors, bear markets can provide opportunities to boost your portfolio and lay the groundwork for more long-term wealth-building. Here are ten ways to make bear markets very bear-able (and profitable).
Find Good Stocks to Buy
Get Stock Investing For Dummies, 6th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
