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» අනං මනං! #/+?.<>
Today at 12:49 pm by Ethical Trader

» ආදායම් බද්දෙන් ආසිරි තැලෙයි
Today at 12:30 pm by Ethical Trader

» Dividend Announcement
Yesterday at 7:07 pm by serene

» Sri Lankan listed firms told to pay dividends directly to shareholder bank accounts
Yesterday at 2:38 am by pjrngroup

» Sri Lanka's Hayleys group to sell assets to reduce debt
Mon Aug 13, 2018 10:05 pm by nihal123

» අපේ දුම්රිය සේවය තැබු ලෝක වර්තාව; වර්ජනයේ අරමුණ රුපියල් 11605 කින් පඩි වැඩිකර ගැනීම!
Mon Aug 13, 2018 3:05 pm by Yin-Yang

» Elsewhere vs SL : Honesty, Social responsibility , Word twisting and Decency
Sun Aug 12, 2018 9:47 am by කිත්සිරි ද සිල්වා

» "මාව පෙළඹෙව්වේ සංගක්කාර" - ඉන්දීය ක්‍රිකට් ක්‍රීඩිකා ස්ම්‍රිති මන්දනා
Sat Aug 11, 2018 5:08 pm by Ethical Trader

» Sri Lanka's Ceylon Tobacco net up 47-pct, volumes grow
Fri Aug 10, 2018 5:19 pm by Ethical Trader

» Sri Lanka's Tokyo Cement in the red, vessel sale adds to loss
Fri Aug 10, 2018 2:27 pm by The Invisible

» Sri Lanka’s Watawala Plantations June net down 57-pct
Fri Aug 10, 2018 2:26 pm by The Invisible

» Sri Lanka’s Aitken Spence Hotel June quarter losses rise 22-pct
Fri Aug 10, 2018 2:23 pm by The Invisible

» ඩොලරයේ වැඩිම විකුණුම් මිල අද වාර්තා වෙයි
Fri Aug 10, 2018 9:00 am by Ethical Trader

» BOC New Internet Banking System
Wed Aug 08, 2018 6:29 pm by Rana

» PB. N0000 (People's Bank)
Wed Aug 08, 2018 11:55 am by Ethical Trader

» දේශපාලනික වාසි උදෙසා සිදුවන ප්‍රතිපත්ති වෙනස්වීම් ගැන මහ බැංකුව මෙසේ කියයි
Wed Aug 08, 2018 11:34 am by Ethical Trader

» Amazing හෙළ වෙදකම
Wed Aug 08, 2018 11:00 am by Ethical Trader

» විදේශිකයෝ ඩොලර් මිලියන 229 ක බැඳුම්කර ආයෝජන ඉවත් කර ගනිති
Tue Aug 07, 2018 12:22 pm by Ethical Trader

» මූල්‍ය සමාගම් ඒකාබද්ධ කිරීම වක්‍රාකාරයෙන් සිදුවෙනවා – මහ බැංකු නියෝජ්‍ය අධිපති කියයි
Tue Aug 07, 2018 12:21 pm by Ethical Trader

» සිංගප්පූරු ගිවිසුමෙන් අපනයන වාසියක් නැහැ – මහ බැංකු අධිපති
Tue Aug 07, 2018 12:19 pm by Ethical Trader

» Sri Lanka to miss IMF forex reserve target; seek waiver
Mon Aug 06, 2018 10:45 am by The Invisible

» Sri Lanka targets lower forex reserves for end 2018
Mon Aug 06, 2018 10:43 am by The Invisible

» Sri Lanka economy to grow 4.0-pct in 2018
Mon Aug 06, 2018 10:42 am by The Invisible

» More curbs on cars as Central Bank battles trade gap
Mon Aug 06, 2018 10:40 am by The Invisible

» What Sri Lanka can do to improve the credibility of its dollar soft-peg
Mon Aug 06, 2018 10:39 am by The Invisible

» Sri Lanka's Hayleys Fabric back in profit in June quarter
Sun Aug 05, 2018 12:11 am by spw19721

» Sri Lanka keeps rates unchanged
Fri Aug 03, 2018 6:10 pm by Ethical Trader

» Sri Lankan shares end up 0.1-pct, foreigners buy NTB
Fri Aug 03, 2018 6:08 pm by Ethical Trader

» Sri Lanka sharply raises tax on small hybrid cars
Fri Aug 03, 2018 6:03 pm by Ethical Trader

» Sri Lanka inflation accelerates to 5.4-pct in July
Fri Aug 03, 2018 5:54 pm by Ethical Trader

» බදු ඉහළට. Wagon R, Japan Alto, Spacia ඇතුළු පොඩි කාර් මිල වැඩිවෙන්නේ මෙහෙමයි
Fri Aug 03, 2018 1:28 pm by කිත්සිරි ද සිල්වා

» India police hunt eight men after sex attack on goat
Wed Aug 01, 2018 1:04 pm by slstock

» Yes, we Khan!
Wed Aug 01, 2018 1:03 pm by කිත්සිරි ද සිල්වා

» ඡන්ද කටේ ,කුලියාපිටියේ ඇදෙන Volkswagen කතාවේ ඇත්ත තත්ත්වය මෙහෙමයි
Wed Aug 01, 2018 7:46 am by serene

» Should CSE be like this? Whose FAULT is it?
Tue Jul 31, 2018 8:24 pm by spw19721

» ලෝකය යා කරන චීන ඉදිකිරීම් වේගවත් කරන යෝධ යන්ත්‍ර
Tue Jul 31, 2018 6:08 pm by Ethical Trader

» 'කාලතුවක්කු උණ්ඩ ගස': "ඉන්දියාවේ තබා ආසියානු කලාපයේ ශාකයක් නොවෙයි"
Tue Jul 31, 2018 5:49 pm by Ethical Trader

» Happy Birthday
Mon Jul 30, 2018 10:27 pm by serene

» Whats ailing Sri Lanka ? Why we are what we are!
Mon Jul 30, 2018 5:48 pm by Ethical Trader

» Lunar Eclipse
Sun Jul 29, 2018 10:56 am by Ethical Trader

» ගුවන් යානා තුළ මකුණන් සිටීමට හේතුව කාලගුණය බව 'එයාර් ඉන්දියා' සමාගම පවසයි
Sun Jul 29, 2018 10:54 am by Ethical Trader

»  Woman finds frog parts in her packet of 'kottu'
Sun Jul 29, 2018 8:42 am by කිත්සිරි ද සිල්වා

» අඟහරු ග්‍රහයා මත ද්‍රවීය ජලය ඇති 'විලක්' ඇතැයි හෙළිවේ
Thu Jul 26, 2018 5:02 pm by Ethical Trader

» තායිලන්ත ලෙනෙන් මුදවාගත් දරුවන් තාවකාලික පැවිදි දිවියට
Wed Jul 25, 2018 10:08 am by Ethical Trader

» ආබාධිත තත්වයක් නිසා හොඬයේ ආධාරයෙන් ඇවිදින අලි පැටවෙකු මත්තල දී හමුවෙයි
Tue Jul 24, 2018 9:59 am by Ethical Trader

» කැනඩාවේ ටොරොන්ටෝ වෙඩි තැබීම: කාන්තාවක් මරුට, දැරියකට අසාධ්‍යයි
Tue Jul 24, 2018 7:58 am by කිත්සිරි ද සිල්වා

» Quick Checklist for Selecting a Stock
Tue Jul 24, 2018 7:46 am by serene

» Chevron Lubricants Lanka appoints new MD/CEO
Tue Jul 24, 2018 7:43 am by serene

» ලංකාවේ සංචාරය නිසා බ්‍රිතාන්‍ය මන්ත්‍රීට පාර්ලිමේන්තු තහනමක්
Sun Jul 22, 2018 6:09 pm by Ethical Trader

» සදහම් හඩ
Thu Jul 19, 2018 6:53 am by Ethical Trader

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Where do investors tend to put their money in a bear market?

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Where do investors tend to put their money in a bear market?

Post by කිත්සිරි ද සිල්වා on Fri Nov 20, 2015 6:41 pm

Where do investors tend to put their money in a bear market?

A bearish market is traditionally defined as a period of negative returns in the broader market to the magnitude of between 15-20% or more. During this type of market, most stocks see their share prices fall, often substantially. There are several strategies that are used when investors believe that this market is about to occur or is occurring, which depend on an the investor's risk tolerance, investment time horizon and objectives. (For related reading, see Surviving Bear Country.)

One of the safest strategies, and the most extreme, is to sell all of your investments and either hold cash or invest the proceeds into much more stable financial instruments, such as short-term government bonds. By doing this, an investor can reduce his or her exposure to the stock market and minimize the effects of a bear market.

For investors looking to maintain positions in the stock market, a defensive strategy is usually taken. This type of strategy involves investing in larger companies with strong balance sheets and a long operational history, which are considered to be defensive stocks. The reason for this is that these larger more stable companies tend to be less affected by an overall downturn in the economy or stock market, making their share prices less susceptible to a larger fall. With strong financial positions, including a large cash position to meet ongoing operational expenses, these companies are more likely to survive downturns.

These also include companies that service the needs of businesses and consumers, such as food businesses (people still eat even when the economy is in a downturn). On the other hand, it is the riskier companies, such as small growth companies, that are typically avoided because they are less likely to have the financial security that is required to survive downturns.

These are just two of the more common strategies and there is a wide range of other strategies tailored to a bear market. The most important thing is to understand that a bear market is a very difficult one for long investors because most stocks fall over the period, and most strategies can only limit the amount of downside exposure, not eliminate it.

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කිත්සිරි ද සිල්වා
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