The best defense against bear markets is a diversified portfolio from "summary" of The Little Book of Bull Moves in Bear Markets by Peter D. Schiff
When it comes to protecting your investments against the unpredictable and often brutal swings of the stock market, there is one strategy that stands out above all others: diversification. A diversified portfolio is like a well-balanced meal—it contains a mix of different asset classes and investments that work together to provide stability and growth over the long term. By spreading your investments across a variety of assets, such as stocks, bonds, real estate, and commodities, you reduce the risk of being too heavily exposed to any one sector or industry. This means that when one part of the market is down, another part may be up, helping to balance out your overall returns. In essence, diversification is a form of risk management that can help protect your portfolio from the worst effects of bear markets. But it's not just about owning a lot of different investments—it's also about owning the right mix of investments. Different asset classes tend to perform differently under various market conditions, so by combining assets that have low correlatio...
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