Investing in Today's Bear Market? Ask Yourself These 4 Questions First
Many people hear the words "bear market" and think they ought to run and hide. After all, the idea of investing when the stock market is down can be scary.
But actually, bear markets offer solid investment opportunities -- because stocks are cheaper to buy on a whole. If you're thinking of putting money into stocks in the next few weeks, that could be a potentially lucrative move, especially in the long run. But before you do, make sure to answer these important questions.
It's too soon to tell what impact COVID-19 will ultimately have on the U.S. economy, and whether a full-blown recession will come to be. But one thing's for sure: Things are pretty shaky right now, so before you put any spare cash you have into stocks, you should first make sure you have enough money in the bank to cover about six months of essential living expenses. If you have little to no money earmarked for emergencies, boosting your savings account balance should take priority over stock investments.
Source Fool.com
