How To Invest In A Bear Market

The S&P 500 sunk into bear market territory on December 24, 2018. A “bear market” is when stocks see a 20 percent decline or more from a recent high — but they’re also marked by overall pessimism on Wall Street. CNBC’s Jeff Cox breaks down how to maneuver a bear market investing environment.

Since World War II, bear markets have lasted 13 months on average, and stock markets tend to lose 30.4 percent of their value. During those conditions it usually takes stocks an average 22 months to recover, according to analysis from Goldman Sachs and CNBC.

It’s helpful to know what a “bear market” is, because based on history it looks like we could be here for a while.

The term on Wall Street is synonymous with serious, long-lasting declines in stock markets. In numeric terms, a bear market is a 20 percent or more drop from a recent peak.

The S&P 500 hit that milestone on Monday December 24, dropping 20 percent from its 52-week high. Markets have stumbled through what is usually one of their best months of the year, with indexes on track for their worst December performances since 1931, during the Great Depression.

Aside from a percentage drop, there are other, more emotional ways to measure a bear market.

Pessimism tends to prevail. When good news isn’t enough to hold off sellers and despite solid economic conditions, markets continue to tank — that’s a bear market. The glass-half-full scenario is often overlooked, and any positive news seems to be forgotten by the close of trading.

In December, oversold markets struggled to make a comeback, suggesting that investors are worried about something bigger. Still, economic fundamentals are not giving red flags of a recession, which is usually a necessary condition for a full-fledged bear market.
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How To Invest In A Bear Market

Comments

Jay Gonzo says:

I read “How to survive a bear attack” starring Warren Buffet
I’d rather see that. Can someone please upload him body slamming a bear to the ground?
I know it’s out there.
Lets do this.

Minimal Maximalist says:

I would suggest for Mr. Buffet to try and survive an Egyptian prison or concentration camp in the desert or 10 years of witch hunting and illegal gang stalking…

Not a bear market….
Those so called investors are spoiled rats with no real life experience….life is never fair is it…

Wei Ong says:

short

Burninmyleather says:

So basically invest in Necessity-Demand and value

Poul Carstens says:

Good video. Terrible sound.

Ron Zhang says:

Bull Markets are the Natural Instinct.

TurkishSmurf says:

i started investing in september 2018 right before bear market …. my luck ladys and gentleman

Matthew Crump says:

Thought this was about bear attacks. Dislike

doo do says:

play inverse tickers.. TVIX, TZA, SQQQ, etc. They are inverse of $DJI. Study the patterns. You can make some good money

Jeff Liu Yoshiyuki says:

We aren’t warren buffet lol

jrukawa11 says:

Answer: Use money to invest

thomas 71 says:

Market still needs to drop more, Trumps government shut down should get the ball rolling. Mexico still won’t pay for the wall, so punish Americans, thanks Donald.

王Michael says:

Steer clear of Apple.

Roxanne Dyer says:

Looks like these guys don’t know any more than average folks; if they did they’d say when to sell so you’d have the cash when it’s time to buy.

Prasad Bankar says:

If plane is going to crash the first announcement you will hear is *do not panic.*

watch dog says:

Great summary containing all the essentials for dealing with bear markets.

Gorilla Disco says:

That is, if you get out of the stocks before they reach the bottom, or better yet, before they started to dive.

justmeandshit says:

U mean bare

Mark Dawson says:

Actually really useful info. Homespun commonsense. Thanks CNBC.

Morgan Gill says:

Misleading/ click bait thumbnail

Johnathan Sanford says:

How to invest? You buy the dip. Next video…

Null says:

“Contrary to popular beliefs, bull markets do not last forever”.

OMG WE ARE ALL GOING TO DIE!!!!!!!!!!!!!!!!!!!!!!!!!

Matthew Miller says:

Don’t listen to the Warren Buffet, everyone knows he cant even calculate his own taxes.

Peter Gayed says:

Buffett clickbait

AnEclecticSoul says:

How to invest in a Bear Market….. Buy as much as you can! Duh

Tourist says:

This guy is exactly wrong. He says buy gold during bear markets. No, average down on index stocks. Bear markets are when stocks are on sale

Learnzz says:

Funny how it’s easy for someone to tell you to sell so you can buy back cheaper and show warren buffet. But he never gives this bs advice.

Nic ndahouse says:

I’m waiting to buy when the real estate goes bonkers again. I need more land and a couple more houses.

master says:

So, when the market is bearish we should buy a rail road? Lol

MonacoPoker says:

Yes buy Apple and Deutsche Bank stock. Lol

Nameless says:

I’m touching myself right now

RDLMeThat says:

I see this as more of a price correct due to interest rates than us heading into recession. Think we are going to be flat to interest rates stop rising.

Positive Investing says:

During a bear market: Buy

Dr. Marlowski says:

Just short an index that tracks how often CNBC reports factual news. It’s a method that works in every type of market and just keeps getting more profitable each day.

Ron Zhang says:

Wonder why Bear Market is so called? Because bears grab prey by pushing its paws down.

In contrast, Bull Market refers to the fact that bulls horn upwards.

w23857980 says:

Do what the bears do in the winter, hibernate for 5 months.

Alvin Morogo says:

Why not invest in crypto markets? The bear market will soon be over…

Nothing Less Than Epic says:

It’s all about to come crashing down as they flash the warning signs in your faces. Start practicing your jump now and please don’t do it where people are walking below.

T says:

If all Warren Buffett cared about was money he’d sue all of you using his image as thumbnails to make it look like there’s a new WB interview, when there isn’t.

Paul M says:

You don’t it’s that easy

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