Bear market
Short selling allows investors to profit during a bear market, but it is a high-risk trade that can result in large losses if it fails. I may not be in this position to do so because I lack experience in this type of bear market rally. Here are some ideas to consider for a safe investment:
- Never keep all eggs in the same basket and diversification of the portfolio is a must!!!
- Think long term
- Prioritise quality
- Build positions gradually
- Don't try to catch the bottom, and so on.
No portfolio works best for a bear or bull market. In my opinion, the banking sector is still the best one for safe investors like me, especially in a bad situation like a long-term bear market as it is less risky. Another thing I like is that the banking sector pays dividends to all value investors, which is a good indicator of confidence and provides investors with a share of profits. Research first and select a reputable bank and compare it to a technology stock or any other. When interest rates rise, investors are drawn to bank stocks, so my choice is to consider buying bank stocks because they are safer and less volatile.
Bank stocks can be excellent long-term investments, but it might not suitable for all investors. There are also some risks in bank stocks such as recession sensitivity, interest rate risk, and loan losses. Remember to DYODD (Do your own due diligence) when making any kind of investment. Happy investing!! ![]()
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whqqq : Well, These two are really good, including some long-term beneficial large companies.