Strong stocks in bear market

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Basically in a bear market, there is a negative return on the capital invested. One of the safest modes is to sell all the investments and either hold cash or invest the proceeds into much more stable financial instruments, such as short-term government bonds etc. By doing this, an investor can reduce his or her exposure to the stock market and minimize the effects in this period.  So we should try to identify strong stocks in bear market.
 
You should be careful
If investors are looking to maintain positions in the stock market, then a defensive strategy must be taken or considered. The reason behind this step is that these larger more stable companies tend to be less affected by an overall downturn in the stock market, making their share prices less susceptible to a larger fall. There are some companies that are more likely to survive downturns. On the other hand, these companies are the riskier companies. Besides the above there are two more common strategies and there is a wide range of other strategies tailored to a bear market. For long term investors, they find very tough to understand the bear market because most stocks fall over the period, and most strategies can only limit the amount of downside exposure, not eliminate it. So therefore, before selling of the shares or stocks find out how many companies are affected and which are not affected. Then instead of pulling out of the market buy the shares or stocks of the companies which are not directly affected and the investors will have a fair return on the capital invested in the bear period.

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Look at the sensex
You must make sure to have a look at the sensex where you would be able to come to know whether it would be beneficial for you to invest in the market at that period of time or not. If you find that you do not know the working and functioning of the online stock market, then you should try to gather the accurate information as this would help you save a lot of your money and you would feel good that you have invested in the profitable stocks. There are some people who do not know the basics of the stock market and still they try to invest their money which is a very wrong thing. Unless you know about the share market you should never try to play in the market as this might lead you to a very heavy loss. You should try to make yourself clear whether you wish to go for short term or long term investments. This would ultimately help you to get the best profits for the investments that you have made in the market.

So always try to gather information on how to identify strong stocks in bear market. You can always visit a genuine website where you can get very useful information that would help you remain in a much profitable position investing in the right stocks. You should be ready to understand the ups and downs of the market situation very well. This would help you to remain ready to take the risk in the market.

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