How to Take Advantage of the Bear Market?

Share:
Indexes
  1. Top S&P 500 ETFs | Find The Best S&P 500 ETF | justETF
  2. Finance Reframed 💵
  3. Join Medium with my referral link - Mohamad Hakim
Courtesy of Pexels.com

The bears are out to play.

The world’s economy is not doing well. There are many factors against us, and only with time will we see the full effects.

In the meantime, the average individual will continue to suffer.

With rising food and fuel prices while pay stagnates, the average individual will likely spend more on necessities, taking away a significant percentage of their disposable income.

Furthermore, many of us currently investing started amidst the pandemic. That was the height of the bull run when easy money flows into every stock regardless of its fundamentals.

It seems as if money can be made anywhere.

This group of investors had never experienced the ’08 economic recession or the tech bubble's bursting in ’00.

Instead, many gambled their money on meme coins and risky stocks like Gamestop. Still, many did turn into millionaires overnight.

However, it is the same group of investors that will face the brunt of the bear market.

As money flows out of risky stocks and assets, these retail investors are left holding the bag.

But what can we do?

Many of us survive from paycheck to paycheck, trying to stretch every dollar. However, with the rising prices, we probably do not have extra to save, let alone invest.

Unfortunately, this is the reality.

But there are ways to mitigate this.

We still can take this opportunity to right our wrongs and realign our intentions for investing.

ETFs

A bear market is a time to double down on ETFs. ETFs are exchange-traded funds, basically, a basket of stocks that tracks either the whole market or a specific sector.

ETFs are inexpensive and are usually in the green in the long run.

Furthermore, it removes the volatility of investing in single stocks.

Some suitable ETFs are those that track the S&P500 and the NASDAQ.

If you are keen on investing in single stocks, find undervalued stocks. I would think many of the tech stocks now are good buys.

Job Hopping

The labour market is tight, which means too many jobs for too few workers. This provides an opportunity for the average salaryman.

As many companies are looking to attract workers, this would put upward pressure on increasing wages. As a result, companies offer sign-up bonuses and a higher hourly rate to fill their job openings.

This is an opportunity for us average salarymen. Just by switching jobs, we can get a pay raise.

Clearing the Space

As everyone is experiencing the pain of rising living costs, there is an increase in demand for second-hand items.

Now is an excellent opportunity to put your pre-loved items up for sale. An additional $20–50 makes a huge difference if we struggle to keep afloat.

At the same time, you get to clear your mind as you clear your space.

Conclusion

These are a few strategies that you can do amidst this market chaos.

The bear market will not go away any time soon, and even though the factors affecting it are beyond our control, there are still strategies that we can adopt to keep afloat during these trying times.

Anyway, I started a Telegram channel to share business and finance news and a splash of current affairs. Do click the link to join. It’s FREE!

Here are some articles that may interest you!