A bull market is coming. 3 investment moves I’m making right now

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If you’re feeling nervous about the stock market right now, you’re far from alone. This year hasn’t been easy, and times of volatility are hard to stomach — even for seasoned investors

The good news, though, is that no recession will last forever. Every single bear market in history has eventually given way to a bull market. Although we don’t know exactly when that will happen, better times are coming.

In the meantime, the right strategy can help you prepare for the inevitable bull market. And there are three steps I’m taking right now to maximize my earnings during the boom.

A person sitting at a table with a laptop and a phone

Image source: Getty Images.

1. I continue to invest

When the market is dark, it’s tempting to hold off on investing until prices bounce back. But if you stop investing now, you’re missing out on an incredible opportunity to build wealth.

Falling stock prices aren’t necessarily a good thing, but they allow you to invest in quality companies at a steep discount. Plus, you’ll be setting yourself up for potentially lucrative returns if the market rebounds.

For example, if you make an investment S&P 500 In early 2009 index funds — at the index’s lowest point in the Great Recession — you could almost double your money in just the next two years.

^SPX Chart

^SPX data by YCharts

In the wise words of Warren Buffett: “Bad news is an investor’s best friend. It lets you buy a piece of America’s future at a marked price.”

2. I am taking a long-term view

It’s hard to avoid getting caught up in the day-to-day fluctuations of the market during periods of volatility, and it’s especially hard to keep a clear head when it seems like there’s bad news around every corner.

Do your best to maintain a long-term perspective when investing. The stock market has been around for a long time, and it has seen some terrible economic downturns. But even the worst crashes, recessions and bear markets were temporary.

Over the past two decades alone, the market has faced the dot-com bubble burst, the Great Recession, the Covid-19 crash in 2020 and numerous minor corrections along the way.

^SPX Chart

^SPX data by YCharts

Despite this roller coaster of ups and downs (along with the current bear market), the S&P 500 is still up more than 165% since 2000.

Regardless of what happens in the coming weeks or months, the market will eventually recover. By focusing on the long term, the current volatility may be a little easier to bear.

3. I am doing my research

Staying invested during a downturn and taking a long-term view are only part of the equation for surviving a bear market. Equally important is making sure you choose the right investment.

This is especially critical right now, as it can be difficult to separate good investments from bad ones when stocks across the board are sinking. But if you invest in the wrong place, your stock may have a tough time recovering from this bear market.

To ensure that you are investing only in strong stocks, it is wise to focus on the fundamentals of the underlying business. Companies with competent leadership teams, healthy financials, and a solid competitive advantage, for example, are much more likely to rebound. The more of these stocks you have in your portfolio, the better off you will be.

No one knows for sure when this bear market will end, but a bull market is on the way. The more you prepare now, the more you can earn during the recovery period.


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