The news is blaring behind you alerting everyone of impending doom and your portfolio is taking a dip as the market plummets. What do you do?! Panic, stay the course, a bit of both? Take a deep breath. This too, shall pass. A bear market can be downright intimidating but can be navigated effectively with guidance and proper preparation.

Let’s start off with the basics by defining what a bear market is. In contrast with a bull market, a bear market is when the market encounters prolonged price declines which usually comes with overall pessimism as a whole and negative investor outlook. Think of the Great Recession of 2007 and the COVID-19 pandemic as the most recent obvious examples of bear markets. If you take a look at the S&P 500 since the very beginning, you will notice that the market has always recovered from bear markets and continues to grow as time progresses. Many experts in the industry have done the research and the studies show that passive investment strategies typically weather the storm of bear markets better than active investment strategies (market timing rarely works anyway). Invesco has a useful visual to help compare bull and bear markets of time and below is the S&P 500* (a general rule of thumb indication for how the market is doing) from 1981 to 2021

Still not fully convinced? Let’s review some strategies:

  • Don’t panic! Just look to the past and realize that all bear markets are temporary setbacks. Relax, spend time with loved ones, and do activities that take your mind off the economy.
  • Ignore the media. News outlets grab your attention with scare tactics and fear-invoking headlines.
  • Sit back. Don’t look at your accounts constantly during a bear market, this will only cause additional stress. Proper planning will help reduce anxiety and stress.
  • Plan ahead. Have an emergency fund of at least three months’ worth of expenses set aside in cash. This will prevent you from having to pull from your portfolio at significant losses. Other planning strategies also help against bear markets, but an emergency fund is a simple and important start.

The final strategy is to seek guidance and that’s where Strittmatter Wealth Management comes in. We have helped our clients navigate the rough seas of numerous bear markets and our financial planning process is designed around the possibility of another bear market occurring (and it will). When you meet with a Lockheed Martin Retirement Specialist, your personal financial situation will be analyzed and we will create a financial safety net to help keep your mind at ease. Have no fear, SWMG is here!

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.

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