Bear markets are a real risk for investors, so here are the things you should be aware of when buying or selling.
Bear market-protection: If the market dips below a certain level, you’ll need to buy some bear market condos, especially if the value of your assets dips below that level.
Buyers beware: Buyers are often surprised when they see a price drop on their condo listing, especially for condos in lower market values.
Beware the next downturn: Bear markets can be unpredictable and sudden.
Bear markets make the market go wild: Bear market prices tend to fluctuate and move with the market.
Bear prices are sometimes inflated: The price of a condo is often inflated when the market is down.
Investing in a condo does not guarantee you’ll win a bear market: Investing only in a single condo, or in a market in which you can make money, can be a better option.
Buying a bear condo may not be enough to protect your portfolio from bear markets: Many investors who buy a bear-market-protected condo have trouble finding the best place to live.
If you have a mortgage, or have a large home that you’re interested in selling, you may have to move out of the condo.
Buyer beware: Bear prices can be inflated, especially when you’re buying condos in a lower market value.
A bear market in your portfolio could cause your portfolio to crash: It can be difficult to predict when a bearish market will start or stop, and how much it will impact your portfolio.