Don’t let the Bear send you into a panic frenzy- Using a typical hedge strategy with options and futures
- Taking advantage of lower prices to rebalance your portfolio
Bear markets when they happen are never a pleasant event for any investor. Long only investors especially tend to be the worst hit. If you are wealthy enough to invest in Hedge Funds you may be damaged less, if you chose the right managers and the right strategies. Despite the pain felt, market corrections if managed correctly, should be seen as an opportunity.
Many investors run for the door when markets become volatile, meaning the turn south sharply. Yet that may not be the best choice. There are certainly more alternatives to simply cutting your positons in stocks. If you have built up a portfolio of stocks you feel will perform brilliantly and have an exciting future ahead you may not be willing to take losses simply because the market is making a correction.
