Preserving Wealth During a Bear Market

Preserving wealth is at the forefront of many people’s minds as they monitor the volatile behavior of the current bear market. The timeline of global economic recovery is still uncertain. During a time of considerable economic distrust, you can still take actionable steps to build a portfolio that makes a bear market more bearable. 

A different kind of economy 

Economic shutdown and a long list of other factors directly resulting from the pandemic continue to influence the economy in ways previously unseen. The current market is also being impacted by issues such as continued supply chain complications, energy prices, international conflicts, rapid policy changes, and inflation. 

Experts continue to monitor quick market changes, but maintain a positive outlook when it comes to future bull markets. Bull markets historically last longer and may result in a stronger economy. 

While we wait for the economy to turn, there are proactive steps you can take to reduce your vulnerability to risk and preserve wealth. Keep your eyes on your long-term plan and talk to your advisor about any adjustments to your bear market strategy to ensure your portfolio is positioned for future growth. 

We are in an emotionally charged time where the temptation to sell and run or buy in the dip is high. Making quick reactive decisions may give you short-term relief, but you will miss out on opportunities for long-term growth. 

Preserving wealth through diversification

Having a long-term plan doesn’t mean you are locked into one strategy forever. Your plan needs to be adjusted to best serve your specific goals and risk tolerance but also maintain a long-term perspective. We are experiencing never before seen challenges, but taking the time to analyze and modify can protect your assets.

The importance of staying informed and communicating with your financial advisor regularly is more vital than ever. Their expert guidance will help apply tactics to align your financial plan with your goals. 

We’ve all heard the saying, “Don’t put all your eggs in one basket.” This aptly applies to your investment management strategy. One of the best tactics to align your portfolio for growth and preserving wealth is asset diversification. 

During a bear market, many consider lower-risk alternative investments. By spreading assets out among various ventures, your risk is lowered if one is not performing well. Among many bear market investment opportunities, an example of a popular option to diversify during a bear market is defensive stocks. These have a propensity to produce consistent returns despite times of overall economic downturn. Individual results may vary among strategies, which is why it is important to talk with your advisor to determine the best choices for your portfolio.

Regardless of your specific financial plan structure, to maintain success it is important to: maintain a long-term perspective; create a diverse portfolio; and communicate and adjust your plan by partnering with one of the expert financial advisors at Good Life Asset Strategies. 

What is my best option? 

Good Life Asset Strategies advisors focus on the best options for each of our client’s unique financial situations. We are dedicated to a sound investment management process of research-based analysis and adjustment to create portfolios that are globally diversified to maximize total returns and preserve wealth. 

If you are concerned about the performance of your investments at any time, especially during this bear market, contact us. We will answer your questions, and guide you to the best solutions for your particular goals.