If you've been paying attention to your recent investment statements or listen to the media at all, you're well aware of the fact that most markets are experiencing some tough times. There is no exact definition of a bear market, but generally when investors and economists are pessimistic of the direction of the market and the economy, and markets see a 20% or more drop in the span of a few months, it is for all intents and purposes, a bear market.
For some, this means scrambling to make changes to their investments, and others may even pull out of the market completely. While this may lead to short-term safety of principal, if you're investing for the long-term, it can actually do more harm than good. So, it is important to understand what your investment objectives are, your risk tolerance, and the time horizon for the funds. Only then can you decide what, if any action to take. Here are some tips on how you can weather a bear market.