Here’s how you should prepare for that next bear market

Personal Finance

There’s nothing more unnerving for investors than watching the market go up and down day after day. All the market gyrations have left many investors wondering if a bear market is coming soon.

The good news is that many financial pundits have weighed in and say economic and market history shows the bear market (and possible recession) are likely to be much milder than most investors fear. The bad news is that eventually a recession/bear market will happen, which is why good risk management is essential.

That doesn’t mean investors should try to time a bear market, experts say. Studies have made it clear that it’s nearly impossible. In fact, attempting to sit out a bear market could sink any long-term financial goals.

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“There is absolutely a bear market coming,” said Tim Maurer, a certified financial planner and director of advisor development at Buckingham Strategic Wealth. “But there’s also a bull market coming and the truth of the matter is that, statistically speaking, the people who try to pinpoint precisely when those will happen will end up losing more money than making money.

“I do advise not making wholesale changes in your investment strategy just based on the fact that eventually we will indeed experience a bona fide bear market,” he added.

“A lot of people are concerned that we might see some sort of bear market or correction as we head into 2019,” said Barry Glassman, CFP and founder and president of Glassman Wealth Services. “The question is will the next downturn be more like the 2008 financial crisis or will it be more like the tech bubble bursting in 2000 to 2002.”

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