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  • Writer's pictureRetire Young

How To Make Money In A Bear Market When Stocks Are Down

Make money with stocks in a bear market when inflation is high

There are 3 easy ways to build wealth and make money when stocks are in a bear market. Number 3 is my personal favorite for long term investors.

Number 1 SPY Puts generate incredible gains when markets shift in the direction you were anticipating. SPY moves on average 1-3% per day which could send calls or puts up 200% in 1 day. These gains are extremely rare in the stock market when day trading.

Number 2 Dividends are another great way to make passive income and build your portfolio while stock markets are down. Big companies like AAPL, MSFT, V and others will pay you every 3 months or every month just for holding shares of their company. For example, Apple or AAPL pays $0.60 for every share owned. You can make $60 every 3 months for free by just holding apple in your portfolio. When stocks are down its a great time to grab more shares to increase dividend payouts.

Number 3 Buy Low when fear is high. Newer traders that have not been caught in a bear market think that it's time to stay away and liquidate their positions. This is the wrong king of thinking if you are an investor. Millionaires are made in recessions and bear markets as you are buying when companies are discounted and on sale. Of course always dollar cost average into new positions or average down on companies you are stuck holding.

Keep track of all the latest inflation data and economic health of the markets at



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