Bear markets can be challenging processes for investors. However, the one upside is that they give an opportunity to buy high-quality companies at very attractive prices.
Although it’s still early in the bear market, and odds favor another leg lower as we are nowhere close to a Fed ‘pivot’ and the economy has only just started to deteriorate, it’s a good time for investors to start building their list of companies to accumulate. Some key characteristics to prioritize are a wide moat around its business, exposure to a powerful, secular trend, and a reasonable valuation.
