Diversify your portfolio
A bear market might be an appropriate time to readjust the asset allocation ratio of your portfolio. If your portfolio consists of 70% stocks, 25% bonds, and 5% cash, it might be a good idea to scale back on stocks and allocate more toward cash. You should diversify as much as possible by investing in a wide range of asset classes. This should be done as a preventive measure to protect your portfolio’s value during a bear market.
