4 Bear Market Rules to Help Guide Your Investing Decisions | Fisher Investments

In this video you’ll learn the four rules Fisher Investments uses to identify bear markets. While more guidelines than “rules”, learn how they help investors understand the difference between a bear market and a correction.

The Three Month Rule advocates waiting three months after a market peak prior to making changes to your portfolio. The Two-Thirds/ One-Third Rule shows that one-third of the decline typically occurs in the first two-thirds of a bear market’s duration, while about two-thirds of the decline typically occurs in the final third. The Two Percent Rule states that bear markets rarely drop more than two percent a month. Lastly, the 18-Month Rule urges you to re-enter the market before 18 months if you did sell out of stocks during a bear market,.

The uncertainty surrounding a bear market can breed fear amongst investors. Having a set of guidelines can help you better understand how markets usually behave which in turn, can help you make better investment decisions. If you require stock-like growth to meet your long-term investment goals you should be invested in stocks more times than not. Investors can sometimes do more harm than good by trying to avoid stocks due to fear of an impending bear market. If you incorrectly call a bear market or incorrectly time defensive portfolio shifts, you can miss out on substantial returns.

To learn more about the bear market cycle, please visit us here. https://www.fisherinvestments.com/en-us/investment-approach/stock-market-cycles/bear-markets

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Видео 4 Bear Market Rules to Help Guide Your Investing Decisions | Fisher Investments канала Fisher Investments