4 Bear-Market Tips From Advisors — and Client Reactions

Financial advisors and investors often react differently to market downturns, as advisors may be more comfortable than their clients staying the course or even investing during the lows, according to a new study by SmartAsset.

In June, U.S. stocks officially entered a bear market as market indexes fell more than 20% below previous record closes. Although recent upticks have reassured many investors, SmartAsset noted that some strategists are warning of a bear market rally, as stocks could still be on the cusp of new lows.

There have been four bear markets in this century, including the recent one. Sell-offs understandably alarm investors, but SmartAsset found that advisors are putting these in a historical context, emphasizing to concerned clients that bear markets are nothing new.

SmartAsset polled 275 advisors on its platform between Aug. 2 and Aug. 16, asking them what advice they were giving clients and how clients were responding.

See the gallery for four recommendations by advisors during the recent bear market and investors’ actions.