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⍰ ASK What strategies do investment companies employ during bear markets?

In tough markets investment firms adjust strategies. They may boost defensive sectors like healthcare. Diversification is key, spreading investments to minimize risk.

Some use hedging like options or futures for protection. Active portfolio management is important, regularly reassessing based on market conditions.

Holding more cash and shortterm investments is common to seize opportunities during price drops. Value investing, finding undervalued assets, is a tactic in bear markets.
 

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