“Preparing for the Next Bear Market: Strategies to Survive Financially”
If you had asked me about surviving the next bear market a few years ago, my response would have been a confident “yes.” Market crashes were seen as opportunities to invest in companies I believed in. However, leaving my regular job last year brought a new perspective. With access to my CPF Ordinary Account savings coming up in five years, I have a buffer to weather any market downturn.
Navigating this transition period has been a learning experience. Despite a slower growth in net worth than usual, I remain optimistic. Reflecting on past bear markets, I recall the Global Financial Crisis in 2008, the impact of the COVID-19 crash, and the painful 2022 bear market. Each market downturn presented its own challenges.
Looking ahead, I project a potential bear market in 2025 or 2026, with significant declines followed by a recovery in 2027. While challenging, I believe my financial situation will remain secure post-2026.
In preparation for a bear market, I have outlined actionable steps to take, including capitalizing on the downturn, reducing expenses, diversifying activities, and liquidating if necessary. By following these steps, I am confident that I can successfully navigate the next bear market.
In conclusion, while bear markets bring uncertainty, with careful planning and strategic actions, it is possible to survive financially. Stay informed, stay prepared, and remember that you have the ability to weather any storm.
