Bear markets, or periods of significant market declines, are a normal part of investing. While they can be painful, they’re not necessarily bad for your portfolio if you take the proper precautions and learn from them. That said, there are certain mistakes that investors make during bear markets that can make even a normal bear market worse. To avoid these problems and help keep your investment strategy on track through these volatile times, here’s our list of five common mistakes investors make during bear markets:
Why do bear markets happen?
Bear markets, like bull markets and recessions, are a normal part of the market cycle. They happen when investors lose confidence in the economy, usually due to a lack of liquidity or concerns about the future of the economy.
Bear markets can be caused by