PRACTICAL PORTFOLIO: Bear Market Do's and Don'ts

Follow our guide for navigating a tough market.

- Ryan Ermey

AS THE COVID-19 PANDEMIC SPREAD ACROSS the globe, economies the world over came to a screeching halt, and stock prices tumbled into a bear market more quickly than they ever have. Stocks subsequently rallied sharply, but we’re far from in the clear. With no hard-and-fast time line for when life will return to normal, the only thing investors can be certain of for now is more uncertainty.

But if history is any indication, we can count on one thing: This bear market, no matter how ferocious, will come to an end. Despite the unique viral source of current market turmoil, “this is all part of the market cycle,” says Morningstar director of investor education Karen Wallace. “Bear markets have happened historically, and they’ll happen again.” In other words, market history is repeating itself, and the time-tested strategies of the past dozen bears will help you navigate through this one, too. Here are some portfolio do’s and don’ts to consider: