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How to escape bear market

clock • 4 min read

Investors are suffering in a bear market, and a nasty one too, as recent changes in correlations between different asset classes mean there are very few places to hide. More dollar cash anyone?

How should we handle this situation? The traditional answer would require careful analysis about macro-economic and corporate trends, investor psychology, monetary policy decisions, and market valuations. Hence, the list of triggers to buy into the bear market would include looking for a peak in the core rate of inflation, a steady rise in unemployment restraining wage pressures, evidence that investors are capitulating, signs that the terminal interest rate is in sight, demonstrated by flattening yield curves and a peak in the US dollar, all supported by stock market PE ratios closer to th...

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