Are there opportunities for profit during a bear market? or should the investor just focus on...
Are there opportunities for profit during a bear market? or should the investor just focus on protecting assets and not on making gains during a bear market, are gains even possible?
Homework Answers
There are many opportunities an individual can benefit from bear market. Both good and bad companies share price tends to go down in this situation. Good companies share price tends to recover after this situation. Hence If the stock of a good company goes down then it should be bought at this moment.
If the share price of a good company goes down due to its selling volume in bear market, but if its financials are good and if they pay good dividends then it is good to buy that stock.
In a bear market, the share price tends to go down so we should diversify our portfolio by buying a good rated (AAA) bond.
Use of options/derivateives would be beneficial. basically a coverd call would be a wise choice.
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Are there opportunities for profit during a bear market? or
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