hello everyone and thanks for tuning
into the financial investor channel my name is brands and today we’re gonna
make it this video and release it probably early so this video will be
covering what to do in a bear market I’m gonna be covering the three major
indexes how they’ve been for the year as you know it’s been a bloody mess
Thursday Friday we were down nearly three percent across the indexes going
into Monday we lost an additional four to five percent making two of our
indexes and the negative for the year one of them still hanging on by a thread
and so we will be covering the three indexes and take taking a look at four
options you guys could consider right now going into what is looking like a
short-term bear market so right now what to do in a bear market short term bear
market so right now the bear has taken the lead for the short term so right now
it’s kind of undecided will the bear react where the bull react we’ve been in
a bull market since back in 2008-2009 you know May 2008 recession happened we
were covered within a year or two a lot of the stocks did recover very nicely
we’ve been on a long run the last time the markets have fallen like this was
back in 2013 where we lost around 5 to 8 you know 5 to 6 percent so this happens
and it’s been a while since this happened nearly 5 years five years so
here we have all three of the major indexes sp500 up the left down now your
today by 0.92% five-day change negative seven point one seven percent now that
hurts Dow Jones now down 1.5 1% your today five-day change negative 7.9 2%
and the Nasdaq still positive for the year by point nine three percent
five-day change is negative six point six eight percent so as you know your
loss when you lose 5% it takes you gaining 10% to get back to where you
originally were so if you lost 7% this week in within five days it’s
gonna take you roughly 14% to get that money back now you should have had a
plan going into the investing you know going into the stock market so this is
the very first thing I will be talking about what was your initial plan what
was your plan for the short term for the long term my plan still I’ve altered my
plan a little bit for the long term as you know for the for the long term in
the past I was well ambassador Dover the last five plus years you know I had
stocks I have bonds I have a variety of other items my Roth IRA IRA my Thrift
Savings Plan my 401k so I’m so well invested and will continue to invest but
I have made other plans which goes into do you have other plans are you planning
on buying any real estate how you planning on moving jumping you know
taking a vacation you know there’s all sorts of plans that can come up for the
short term so my plan recently changed kind of going into 2000 end of 2017 18 I
had begun looking at real estate I really wanted to turn my attention and
begin buying some rentals but I’m looking to buy another house and move
there rent out my current one or if my offer gets denied I will say take that
time and buy one or two smaller level rentals in order to create some cash
flow outside of dividends so that was my plan going in 2018 was I wanted to at
least buy an additional house rent out my current house underneath an LLC or
buy two additional rentals and own those underneath an LLC so that’s still my
plan for 2018 I would like to buy one rental or buy another house and rent my
current one out so that did change my long-term goal is to get in the real
estate so how much time until you retire now I’m 32 I still have quite a while
and tell the retirement age of around 60 you’re 15 and a half and I would like to
retire before then so I’m working to create cash flow I would like to get on
the real estate for that so I have quite a while until I really need to retire
but I would love to retire much earlier and that’s why I’m trying to speed up
the process by withdrawing out of the stock market a little bit and it said
focusing on real estate where I can have some tax advantages option number one
that you guys can consider is to hold on to everything you have inside your
portfolio whether it’s positive or negative and wait out the storm the
stock market does go through Corrections it does go through recessions you can
lose 5% you can lose 10 20 30 percent in a single day and it will recover over
the long term so holding on to your positions for the long term is gonna
work out as long as you’re invested well and blue chip solid companies you know a
few of the matter that have been through multiple recessions Procter & Gamble
Amazon Amazon wasn’t around during the last one yes Amazon Google Apple Johnson
and Johnson you know there’s so many stocks out there that have been through
recessions they’ve made it out well under you know two years and as long as
you bought and hold held that stock you would have never lost any money because
you never lose money until you sell a stock option number two now you can sell
all or part of your winners for the money in order to use it for averaging
down on other positions so this is I have the red and the green at the top
because this is not a negative or a positive move in my current situation
I’m not looking to add any more money into the stock market so I don’t have
any money in order to average down on some of my positions that I’m down on so
I will be using auction number two or I have begun to sell some of my winners
I’m only selling my winners that I feel have you know they’ve gained quite a bit
you know a V Costco lows a lot of those stocks are up thirty to seventy percent
so I’m using that money I sell in that position in order to invest in some of
my lower tiered positions where I’m down on
and also be taking a little bit of money off the market in order to kind of wait
it out and begin investing in real estate such as I’ve kind of been
focusing my I plan on for the long term so that’s option number two option
number three is you can begin to short the market now there are a couple ways
you can do this and I have one of the examples here now so if you think the
stock market is going to go down you do have a few options you can begin to
short stocks or exchange-traded funds you can also buy put options or some of
the one of the best options that I’ve actually found is to buy these inverse
equity ETFs so as you notice the S&P 500 went down four point I’m gonna guess
four point you know four point eight percent somewhere in that time frame
here so you can see for point 10 so these inverse etf they double the
reverse of what the indexes do so if the end sp500 went down four point four
percent this went up eight point fifteen percent same with the Dow Jones this
went up nine point one eight percent and this one went up seven point six percent
so here you can see the indexes are SDS for the S&P 500 the Dow Jones inverse
equity as dxd and the Nasdaq is qid now I do not recommend you hold these
through the night because you don’t know what the market will do in the following
day and these do double whatever the major indexes do so if the major index
goes up four percent these will go down eight percent 50 major index goes down
two percent they used to go up four percent so if you know the markets gonna
be on a downwards trend during a day you can use these to short you know short
ETFs in order to inverse your loss from your other investments so that’s one
option that I’m considering now that I have some cash on hand by selling some
of my winners I will probably more than likely short the S&P 500 just because I
do currently hold veau inside my Roth IRA well I have sold some of my Roth
my vu and my other position in order to use some of the funds in order to short
it possibly for the short term in order to build back some of the losses that
I’ve captured over the short term and then I’ll reinvest when the when the
market kind of corrects itself it begins to move on its way back up into the main
indexes that I’m still invested in for the long term option number four is you
can begin to funnel more money into your account and use this money to average
down on your positions this isn’t an option I’ve considered because I don’t
have money I want to invest into the stock market I’m actually have been
looking to pull a little bit of money out of the stock market in order to buy
rental properties or another house so this could be one of your options that
you could use if you do have some additional money on hand you can funnel
it back into the market add into positions that you feel are down and
actually valued but the price is down so I have actually included a lot of
pictures here you can see the three major indexes and option number two
buying or selling it’s neither negative or positive so option number four is if
the value of the company have not changed but the price has decreased such
as Procter & Gamble that was one of the videos I just made a video with five
dividend aristocrats that I’ve paid out and increased dividends for five years
or twenty five years or more that are currently down with a yield over price
you could begin using that money to buy value blue chip companies that are
currently down in the price and of course over the long term this always
equals success because the S&P 500 a lot of these big blue chip companies they
always rebound over the next one to two years and they’ve also been paying you
dividends and you’ll make it out in the end positive whether you’ve lost for the
short term so that is basically it again option number one hold on to everything
you have whether it’s negative or positive and just kind of wait out the
storm with time everything will fix itself
option number two sell all or part of your positions and your winners only
because you never lose any money inside of your losers until you sell
use the money from your winners in order to average down on your other positions
that are currently at a loss or that you feel could be very beneficial to your
portfolio and you have a held before and option number three use some of these
inverse ETFs in order if you see the S&P 500 is making its way down again
possibly at another 3/4 percent loss by buying the ticker symbol SDS you could
increase yourself by nearly what six four to six percent and a day but again
do not hold these over the night because you don’t know what the stock market
will do in the following day it’s very risky to hold these because whatever the
S&P 500 or the indexes do these do the opposite at double the rate option
number four add more money into your account and use this time to average
down on companies you believe are at a great value in comparison to their price
now none of these options are you know there’s no better option it’s all up to
you again your plan what was your initial plan my plan recently changed I
want to get on the real estate so I’m in the you know I’m in virgin voguing a few
different options that I have you know I’ve considered these and I will be
acting upon those actions so that is it for this video if you guys are you know
if you did enjoy this video hit the like button below if you are brand new to my
channel remember to hit the subscribe button for future financial videos if
you have any questions or wants to say hello or you have other options that
you’re actually considering leave them in the comments below I love to read you
guys’s comments and of course as a friendly disclaimer I am NOT a financial
advisor or tax professional the information provided is for you know
it’s my opinion for entertainment and fun this is not investment advice this
is just me as a financial investor trying to help others make their money
work for them and you know help stop some losses if you’re able to see that
the stock market will continue on a downward trend while why not short the
the stock market why why not short in ETF so use these you know these are very
risky to use so just be careful because they do again double whatever the major
indexes do so that is it for this video I thank you guys for
watching and I will see you next time have a great day

4 thoughts on “Stock Market Pullback – What To Do During a Bear Market – Planning For a Stock Market Crash?”

  1. Thanks For Watching – Let me know in the comments below, what is your plan for the long term, what options are you considering & did this video help you?
    Option 1: HOLD & WAIT!
    Option 2: Sell Winners & Avg Down On Losers (Sale Stocks!)
    Option 3: Short Major Index Inverse ETF's (3 Examples Provided)
    Option 4: Funnel More Money In & Average Down!!!
    Brent

  2. Great video man I am looking to scale back in my positions as well and if the market goes down over 20 percent from the high I will buy inverse ETFs

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