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How To Invest Like a Millionaire During a Bear Market

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As the U.S. remains in a bear market, it can be challenging to keep your chin up when you view your portfolio. But a mindset shift might be the key to continue building wealth. Learning to think and invest like a millionaire — or even a billionaire like Berkshire-Hathaway’s Warren Buffett — can pay off big in the end.

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And there will be an end. Analysts say a bear market can take anywhere from two years to 38 months to rebound to previous levels. However, most bear markets reach their bottom at around 12 to 13 months and begin the slow climb upward from there, GoBankingRates.com recently reported.

What can you do in the meantime to keep your sanity while keeping your portfolio growing?

Look for Entry Points

As Warren Buffett has said, “Be fearful when others are greedy and greedy when others are fearful.” That means you should consider stocks you’ve had your eye but that weren’t at your personal buy point, and take advantage of the down market.

“Set aside the emotion and look at a bear market from an opportunistic perspective versus one of fear,” Drue Kampmann, co-founder of True Financial Partners, told U.S. News & World Report. “Historically, the best days in the stock market follow some of the worst days in the market.”

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Know Your “Why”

Knowing your “why” for building wealth, such as an early or comfortable retirement, can help keep you motivated. But also dig deep into the reasons you own specific stocks. Chances are, if you were attracted by solid fundamentals, those fundaments are still good in a bear market. Remembering your “why” for each investment can help keep you from panic selling.

Automate Your Investments

It can be scary to put money into the stock market as you’re watching everything fall day after day. But that’s exactly when you should be buying, as it represents a great opportunity to dollar-cost average your investments. Automating your investments is one strategy that can help you continue putting money into a bear market. You also won’t drive yourself crazy trying to “time” the market, which expert investors say can lead to stress and losses.

“The saddest investing missteps we see are when people try to outsmart the market, typically by selling stocks during periods of uncertainty like late 2008 or early 2009, or even December 2018,” Tim Quillin, a partner at Aptus Financial, told US News & World Report.

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