August 24, 2015 in Investing

7 investment strategies to defy a downturn

The worst rout in stocks since 2011 makes it hard not to feel edgy. But the best investment strategy is to sit tight, financial experts say.

“It’s important to not push the panic button,” says Greg McBride, chief financial analyst at Bankrate.com. “To panic and sell guarantees nothing more than locking in those declines.”

Here’s some grounding. Traditionally, a bear market occurs when several broad market indexes are down by at least 20% over a 2-month period. During the 3rd week in August, the Dow Jones Industrial Average fell nearly 10%, while the S&P 500 was off 6%.

“Markets often recover as quickly as they fall, so it is important to just hang tight, rather than trying to jump in and out,” says McBride. “These pullbacks also represent a very attractive buying opportunity for long-term investors.”

7 investment strategies

Go to Las Vegas to gamble. Otherwise, stick to these 7 money strategies during a market retreat or rally: