Markets tend to be dynamic and subject depreciation or appreciation of a wide variety of commodities, assets, products and currencies owing to a number of geo-political and economic conditions. When prolonged and significant price declines of 20% or higher occur, it is referred to as market downturn or a ‘bear market’. A bear market results in overall market declines across all product or asset categories and if aggravated, these can result in catastrophic economic recessions and very high market inflation.
Every investment is an endeavour which fosters under favourable market conditions and safe economic expectations. There are omnipresent variations of highs and lows but these can easily be mitigated by a diversified portfolio maintenance and other asset planning strategies. A bear market or market downturn is however a different game altogether.
With diminished growth prospects and declining asset prices across all categories, investors often panic under such conditions and make flawed choices which further dent their portfolios and disrupt financial endeavours.
Strategies to put into use if you find yourself caught in a market downturn
Sometimes defense is the best offense. When experiencing the economic catastrophe resulting from a bear market, investors must take a defensive posture and avoid panicked decision making. Despite how damaging these situations tend to be, what must be considered is that these are impermanent times. Deriving the positives from the market disruptions and enabling informed decision making is made possible with the guidance from the financial services executive Rani Jarkas.
Here is how you can survive and even thrive in stages of market downturns -
- Keep calm
The economic woes and financial disruptions must be approached with a calm mindset. By avoiding emotional control over the investment decision making and enabling a guided approach as served by Rani T Jarkas Cedrus Investments, you will be able to survive the bear markets just fine. In the end, these are brief stages of catastrophe which will pass.
- Diversify investment portfolios
One of the best effective means to enhance risk mitigation in times oof market crashes is to enable portfolio diversification. The financial services Rani Jarkas firm suggests having your financial or investment portfolio diversified across stocks, real estate, precious metal, passionate and alternative assets. You can seek an expert guidance in asset allocation from Rani Jarkas Hong Kong.
- Take advantage of better asset entry prices
During economic downturns and bear market crisis, the prices of stocks and assets dip to a significant low. While their current market value depreciates to a point beyond any profit generation level, it can prove better over the long run. With the markets down, you end up buying shares, and other assets or stocks at relatively low entry prices. Thus, you can accumulate more shares in a controlled way as you get to pick up stocks on sale.
- Stay dormant
Global economic disruptions and downfalls are events of an immense scale. You cannot outperform the crisis and thus fighting back can prove detrimental for your overall financial portfolios. By avoiding sudden decision making and staying dormant, you can survive the bear markets and minimize your vulnerability to the crisis.
- Seek investments in good companies
Market downfalls are notorious for hammering down valuations for good companies. In a bear market scenario, you can find good values with attractive prices for share or stock assets of good companies.
If you wish to survive the next market crisis and downturns, you can best prepare to prevent losses from the same by avail of expert guidance from Rani Jarkas services.