Buyers throughout Canada have had loads to cheer about over the previous few years, as markets largely rebounded from current downturns and delivered strong positive aspects. However as we head deeper into 2026, many are questioning: Is the following bear market across the nook?
Let’s dive into some key methods to think about for these trying to put together their very own mindset and portfolios for the long run.
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Fortify your portfolio’s basis
I believe step one buyers ought to take into account is to assessment your portfolio’s mixture of equities, bonds, and money. Within the late phases of a market enlargement, it’s simple to turn into obese in higher-growth or speculative holdings. A fast rebalance (as in, trimming some winners and including to defensive positions) could make a giant distinction.
For Canadian buyers, this would possibly imply proudly owning extra dividend-paying blue chips like the large banks or utility shares or firms in different defensive sectors. These companies generate regular money stream and have a tendency to climate downturns higher than their high-flying tech counterparts. A dose of stability goes a good distance when volatility spikes.
Keep loads of money and suppleness
Liquidity offers you choices. That’s what money is sweet for, and it’s one thing most buyers underestimate. Throughout a bear market, money isn’t lifeless cash. Fairly, it’s dry powder. With even a modest money reserve of 10–15% of your portfolio, you’ll be able to scoop up high quality shares buying and selling at fire-sale costs when the market overreacts.
Being affected person whereas others panic typically separates the common investor from the nice ones. Bear in mind Warren Buffett’s well-known line: “Be fearful when others are grasping, and grasping when others are fearful.” It applies completely to bear markets.
Time available in the market beats timing the market
Attempting to forecast the precise begin or finish of a bear market is a dropping recreation. As a substitute, think about controlling what you may. Which will imply one’s financial savings price, funding technique, and emotional self-discipline – doesn’t matter. Personally, I want to stay to largely top-tier blue-chip shares with confirmed enterprise fashions and safe money stream technology capacities.
Certainly, bear markets may be painful, however they’re at all times non permanent. These downturns reset valuations, check conviction, and reward endurance. Nevertheless, for those who’ve achieved the work forward of time, stayed diversified, and averted panic-selling, you’ll not solely survive the following downturn. You’ll come out stronger on the opposite facet.