Learn What Millionaires Do During A Bear Market

The markets are showing some signs of life, but with the macro looking more likely to get worse before it gets better, the chances that a new bull market has begun are slim.

The worst thing to do in such times is to act like a real bear and slip into hibernation. Yes, it’s scary to take on the markets when red is the dominant color, but life goes on regardless.

Bear and bull markets are cycles. In each one fortunes are made and lost regardless of which way the wind blows.

Those who stand tall through every up and downturn are those that are less affected by the whims of market swings and most often come out on top whether sentiment is bullish or bearish.

When it can be difficult to know how to act, following the tips and tricks of those who have been around the block and not only survived but also prospered, is often a good place to start.

Don’t Run!

Bear markets bring losses, but absorbing the loss is what sets the true investor apart.

In the first instance, millionaire investors don’t run at the first sight of blood, as their portfolio is diversified intelligently so that not each sector is hit in the same way when one market slumps.

Traditionally, this is what has led most of the smartest investors to always have a reserve of gold on hand as a safe haven. Historically, when the markets lost their heads, gold held its course. The returns might not blow you away, but they will offer solace and confidence when other investments are making a dent in your balance sheet.

Investing a significant percentage of their wealth in gold characterizes the slow and steady approach of the millionaire (and billionaire) investors who ride out the storms no matter how bad they get.

Consider Automating

The power of cost-dollar averaging cannot be over-emphasized. It might not be the sexiest way to play the markets, but sticking to a fixed investment plan month-on-month is one way to stay ahead of the game.

It’s often said that the amount of time spent in the market is way more important than trying to time the market.

Pulling money out and then putting it back in involves two sets of risks. Was it too early to exit, and when is too late to get back in?

By allocating funds ahead of time, choosing historically solid investments, and placing a fixed amount each month or quarter regardless of the market sentiment, the long-term outlook is almost always going to be one that is characterized by green, in more ways than one.

Keep Bear Markets in Perspective

There is no surefire way to come out ahead in a bear market, but as with all investment strategies, there will be the right one for you.

Not running at the first sign of red is universal, whereas automating is sensible, but may not be for everyone. Another universal rule is to always remember that all of this has happened before.

Even if you take a hit, understand that this is just a market cycle. Some companies will get rekt to the point of no return that is true, but a smart investor will never be overexposed to any one company, and hedges should balance out the pain.

By keeping perspective, not only do you steady yourself against running, but you also set yourself up to take advantage of what is a fantastic buying opportunity.

Economic downturns are an opportunity to buy at a discount, and the moves made in this period can be those that pay off most handsomely in the long term.

Millionaires know that the best days in the stock market are those that follow a bear market. It is never darker than before the dawn, and this is never truer than when talking about the markets. Keeping a perspective of where you are and what will happen next is a key characteristic of millionaire investors and one that you can easily learn to implement for yourself.

Hedge the Hedge

Gold has not really lived up to its name as a strong safe haven during this latest economic downturn. And the hope that crypto could become digital gold has also failed to materialize so far.

Short-term outlooks are not for winners, however, and looking forward we all know that gold will do what it’s always done and if BlackRock’s recent welcoming of Bitcoin does not tell you something about the prospects for crypto, you’re in the wrong game.

With all of that being said and understood, this bear market could be a great time to take a closer look at a stock like Asia Broadband, Inc. AABB, a company that has been heavily invested in the production of gold for the last 20 years

Asia Broadband also recently launched the AABB Gold Token, using $30 million of its gold bullion as collateral, with the goal of becoming a worldwide standard of exchange that is secured and trusted thanks to its unique mine-to-token vertical integration.

Not only does AABBG feature this unique mine-to-token feature, but its entry point is a reasonable one that enables retail investors to play their own part in this exciting sector without parting with the huge outlay that comes with other gold-crypto tokens. Get Your AABBG Here!

Image sourced from Shutterstock

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Market News and Data brought to you by Benzinga APIs
Posted In: Penny StocksMarketsAsia BroadbandPartner Content
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!