This article is not meant for financial advice, all thoughts are of individual perception and scenario of possibilities.

Perhaps many are wondering by now? What is going to happen next? Will the federal reserve print more money? Will DogeCoin go to the moon… and of course what will Elon tweet next?

Last week in a press interview, the chairman of the Fed mentioned that there is “Froth” in the market, At the time of publishing the article, this week, options on SQQQ went up massively.

For many millennial working adults, we have never faced a bear market before, and we’ve only just started to dabble and learn about investing in recent years. Most of us were probably too young (in our teenage years) to truly understand/ felt the brunt of the economy back then.

Now as we step into adulthood, and as we becoming an active contributor/participant in the global economy, one cant help but to ponder, how do I safeguard my finances “if” a financial crisis happens.

In this article, I will share my research and findings that hopefully provides some good knowledge to you too!

Millennials guide to investing and defending in a bear market.

Tip: CASH IS KING (Always)

A bear market can last for years, and it could take years after for the next bull cycle to come, always protect your capital, in the most stable form of asset.

 

defend strategy

Defend Strategy (Low Risk, Conservative) 

Defend Strategy 1: Invest in Fixed Deposits and Bonds

During a bear market, it is often wise to get your money working for you “still” by placing them in lower risk investments such as fixed deposits or bonds.

Defend Strategy 2: DCA your investments

During a bear market, DCA is a good strategy to lower your break even price. Tip: no losses are recorded until you sell, same goes for profit.

Defend Strategy 3: Manage costs

During a bear market, it is good practice to do an assessment and rebalance your expenses.

Defend Strategy 4: Invest in yourself

The best investment is to invest in yourself.

Agressive Strategy:

Aggressive Strategy 1: Buy the Dip!

This is also called knife catching, may land you great returns, and also great risk – the truth of the matter, almost all people had and has never been able to time the market successfully (myself included). Limit your exposure by simply asking the question, what is the price you are willing to buy at, if its in your range, good! If not, just wait for the next opportunity.

Aggressive Strategy 2: Exposure to non-depreciating asset classes

Car is not an asset! Research on assets that are less likely to depreciate

Aggressive Strategy 3: DCA into an ETF

 

Aggressive Strategy 4: Invest in yourself

The best investment is to invest in yourself.

 

The article will be updated over time, leave your comments and feedback below and remember to share. Remember this is one man’s view to the subject, if you will like to share knowledge please participate and comment below!