How to prepare for the next bear market

From the UBS Chief Investment Office is a look at bear markets, how to recognise them and how to protect against them.

“Are we in a bear market? Not yet. While 2018 saw a 19.8% peak-to-trough drop in US large-cap stocks (S&P 500), this was just a run-of-the-mill bull market correction, not the beginning of a bear market. We expect the current economic expansion and equity bull market to continue for some time but, even so, you should not wait until the next downturn is imminent to take commonsense steps to plan for a bear market.

By studying bear markets closely, you will learn that they aren’t as dangerous as they seem. Cutting through the many misconceptions, our goal is to help you lay the foundation for protecting yourself against market downturns. In three parts below, we explain why bear markets need not threaten financial success, and how they can be an opportunity to improve long-term returns for those who are prepared.”

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