{"id":1563,"date":"2022-06-02T08:37:50","date_gmt":"2022-06-02T15:37:50","guid":{"rendered":"https:\/\/smallcapdiscoveries.com\/?p=1563"},"modified":"2022-06-02T08:37:50","modified_gmt":"2022-06-02T15:37:50","slug":"tips-for-surviving-a-bear-market","status":"publish","type":"post","link":"https:\/\/smallcapdiscoveries.com\/articles\/tips-for-surviving-a-bear-market\/","title":{"rendered":"Tips for Surviving a Bear Market"},"content":{"rendered":"
\nOn May 21, US stocks briefly dipped their toes into a bear market with the Nasdaq falling 20% or more, and the S&P 500 nearing that critical 20% figure since the highs. And while it remains to be seen if a real bear emerges, investors can hardly be blamed for being tempted to capitulate.<\/p>\n
For most sectors, 2022 has been a bloodbath. The tech sector is a train wreck, with many of the COVID darlings now in severe correction mode. Global stocks recently recorded the longest weekly losing streak since 2008. And the Russell 2000, which is the benchmark for small caps, is deep in the red year-to-date.<\/p>\n
It seems that every time the market starts to rally, bad news brings it back down shortly after. And for many new investors, whose only experience with a bear market was the whiplash-inducing crash and euphoric rise of March 2020, this situation may seem a bit daunting.<\/p>\n
The reason we aren\u2019t seeing a quick recovery from the current downturn is complex, but one major factor is that central banks can\u2019t just cut rates and flood the world with money. They have to tighten to deal with very hot, decades-high inflation. And this is taking the momentum out of the market, which is digesting the stubborn ongoing pandemic, the ongoing crisis in Ukraine, and the resulting messed up supply chains.<\/p>\n
This all leads to negative sentiment, creating the self-fulfilling prophecy of continuous negative markets as \u201cRecession\u201d gets thrown around. So, in summary, things are a bit messy right now.<\/p>\n
But, as we have said many times before, you should rejoice if your stocks are on sale. You just need to keep perspective and follow some simple wisdom . . .<\/p>\n
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