Top 3 Instruments To Trade In A Bear Market

What’s a Bear Market?

Imagine how a bull or a bear would attack their prey. A bull typically raises its horns upward, while a bear strikes with its claws downward. So, a bear market is one that is trending down for a consistent period of time.

What To Trade When The Market Is Like This?

Bear markets are notoriously tricky to predict and manage. By the time you realise we’re there, prices are already down 20% from their recent highs.

#1 Bonds

Fixed-income securities have been used by investors in downturns as they typically rise in value when stocks fall. One thing to watch is US treasuries bonds, as they’re backed by the largest economy in the world. Despite concerns about the financial health of the country, US government bonds are seen as being among the world’s safest.

#2 Precious metals

Gold and silver are both viewed as safe haven assets. This tends to mean that investors flock to them during financial crises, pushing up prices.

#3 Defensive stocks

Defensive stocks belong to companies that are usually less affected by downturns than the rest of the market. These companies are often those that experience continued demand for their products, despite difficult time.

Do you agree?

What will you be trading in the bear market? Have you already shifted your trading strategy? Let us know by tweeting us at @_Contentworks.

Top Trading Events Week Commencing 27.06.22

We should see quite a busy week in the markets, here are the hottest events for your trading calendar.

Monday

● EUR — ECB Forum on Central Banking

Tuesday

● EUR — ECB Forum on Central Banking; GfK Consumer Confidence (JUL)

Wednesday

● EUR — ECB Forum on Central Banking, ECB President Lagarde Speech

Thursday

● CNY — NBS Manufacturing PMI (JUN)

Friday

● EUR — Core Inflation Rate YoY Flash (JUN)

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