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How to Make the Best of a Bear Market

How to Make the Best of a Bear Market

| September 09, 2022

Bear markets are a source of fear for most investors, however, if your investments are diversified, it can be easier to weather. A bear market refers to when a market experiences prolonged price declines, typically when securities prices fall 20% or more from recent highs. (1) Some also view bear markets as a time of opportunity. Regardless of whether you are seeking loss-aversion strategies or ways to capitalize, there are steps you can take to build your financial life up even when the markets are down. 

Avoid Panic 

When the marketplace is behaving erratically, you as an investor need to do the opposite. One of the worst mistakes we can make is to sell from a place of panic. That’s because acting emotionally can turn a temporary loss into a permanent one. Instead, review patterns of the past, recenter your thinking and make level-headed decisions. 

Think Historically

History tends to repeat itself, and that’s certainly true when looking at the stock market. Major drops in the market are nothing new. In fact, it’s been rising and falling in a record-setting fashion for nearly a century. Whether it’s a depression, recession, or pandemic, the economy has shown its ability to bounce back from even the hardest of times.

Look at the Big Picture

Selling out of fear is just one way we sabotage ourselves. Another way is to avoid our problems altogether. It’s important to have a clear picture of where you stand amidst a market downturn. While it may be unpleasant to see yourself in the red, it’s critical to review your diversification. By investing across multiple asset classes, you help hedge against market volatility.

Market drops can be a great reminder that your strategy is either working or in need of an adjustment. By speaking with an advisor, you can review your portfolio, your targets, and your trusted course of action during turbulent times. 

Help Others

One of the best ways to settle your own stress is to focus on others. When you see the struggles of friends or family, it can put your own in perspective; moreover, it can provide excellent motivation to get yourself in order. That way you can serve as a steady, stable source of help to those in need. 

It’s a privilege for our firm to serve investors like you. We’re able to see the benefits impact you directly, and the lives of your loved ones. If you’re looking for guidance on how to care for members of your family, please reach out to us. Furthermore, we’re happy to provide a complimentary review of your family’s or friend’s investments and give recommendations. 

Request a Review

Whether you’re just reviewing your current financial plan, or looking to make changes amidst the down market, you’re not alone. As an independent, fee based firm, we remove hidden incentives and link our own growth to yours. Integrity remains central as we work together to ease your worries, understand your situation, and put together a plan to not only survive volatility but thrive on the other side of it.

To learn more about our firm and how we can help you during a down market, reach out to us at or 617-523-5656 to schedule a complimentary appointment so we can get to know each other.

About T.A. Holland & Co.

T.A. Holland & Co. was founded in Boston, Massachusetts, in 1920, and serves individuals and businesses throughout the country. We provide cutting-edge financial services with a broad array of solutions to help our clients grow and preserve their wealth. We have seen good and bad economic times. Through it all, T.A. Holland & Co. has thrived by always making the customer our #1 priority. We get to know you and understand your needs so we can provide you with the proper guidance and strategies. Our senior vice president, John Hellmuth, has been at the helm of T.A. Holland’s financial services since 1990, but he doesn’t do this job alone. He is joined by his two children, Lindsay Hellmuth and Thomas Hellmuth. As CERTIFIED FINANCIAL PLANNER™ practitioners, our financial services team has the knowledge and experience to help you solve your most pressing financial challenges. To learn more about how we can help you, visit our website and reach out to us at (617) 523-5656 to schedule a complimentary get-acquainted meeting.