7 Tweets 1 reads Dec 20, 2022
How to prepare for bear markets: A 6-point checklist for long-term investors
The bears have arrived!
With the soaring inflation, RBI repo rate hike by 50 basis & global indices fallen more than -20% peak, we've now descended into the bear market.
💡Be aware of the hot tips. It’s the worst time to make FOMO-driven investments.
Courtesy: Seeking Alpha
“Only-truth-no-dare” season
Changing your allocations to protect your portfolio or maximize profits will only lead to severe losses.
đź’ˇStick to your long-term plans with goal-focused investing.
Through thick and thin with SIPs
The only you to maximize your returns is to hold on to your investments for an extended period.
đź’ˇVolatility is common in markets, but the SIP discipline will help your sail through the worst market phases.
NO to panic, YES to diversification.
Seeing all your assets in red will cause panic. The key is to diversify.
💡Keep your short-term investments in less volatile & liquid assets like FDs, and don’t track your long-term assets frantically.
Don’t try to beat the market. Invest consistently.
Timing the market in a bearish phase is a fool’s errand. That’s because you can only get the timing right so many times.
đź’ˇYou can make outsized returns by being consistent with your goals, investment horizon & risk appetite.
It’s a good time to analyze your risk tolerance.
Anyone can be a hero in bull markets, but bear markets are a true test of your patience.
đź’ˇAnalyze how much you have at stake and how much you can account for loss? De-risk and diversify your portfolio accordingly.

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