US stocks are on track to end the year with an excellent return this year. The S&P 500 is up by over 28% so far this year. Globally other developed markets have also increased by doubt digit percentage points this year. For example, Germany’s DAX has shot up by over 26% year-to-date.
With stocks earning such high returns this years, some investors may become complacent. But now is the time to be cautious and be prepared for any market volatility. In fact, it is important to ensure one is prepared for a down market should things turn for the worse next year. That said, below is an interesting infographic from Schwab showing some of the do’s and don’ts for the next bear market:
Click to enlarge
Source: Charles Schwab