Bear markets can be devastating for many, as you may have heard from people who have survived the horrors of 1973-75, 2000-2002, or 2008. However, if you’ve survived one or more of these bear markets, you will know that these markets do not last as long as bull markets do. The only things that matter are how well you have maintained your portfolio and how diverse it is. In fact, many investors see a bear market as an opportunity to invest in stocks that will matter in the long run and establish the foundation of their portfolio. The following are some important tips for stock investors to help you earn good returns in a bear market:

• Find the right companies to invest in
  In a bear market, the stocks of good companies, as well as those of loss-making organizations, go down. The stocks of some companies will not be able to resurface, while those of good companies will come up shortly, as the company has planned for such a scenario. Take it as an opportunity to invest in suitable organizations so that you earn good returns in the long term.
• Look for companies that pay a dividend
  A dividend is received from the net income of a company, while the price of the stock is dictated by buying and selling in the stock market. There might be a possibility that the stock price of a company is going down, but the company is still paying a dividend as per the policies because it is making a profit. In such cases, you can be financially secure and rely on the dividends until the stocks rise again.
• Expect volatility
  This is one of the most important tips for stock investors. There is a certain cycle that the stock market follows, and you should know when to hold your stock and when to sell it. There are different nuances in different kinds of markets—bull and bear—and you must know how to make the most use of both these markets individually. While there is a lot of conviction on a bullion market, a bear market is associated with a lot of disbelief. However, different kinds of investments can be made in both kinds of markets, so it is wrong to believe that you should only invest when the market is going up. Also, a bear market is followed by a bull market, so patiently wait for one phase to end and the next one to begin.
• Make the most of a bull market
  In a bull market, you can invest in a business that is doing just alright, load up on stocks of smaller companies, and so on. At the same time, an important tip for you to follow as a stock investor is to not invest in companies that you don’t know about or are not familiar with the workings of as you do not know how the company would react to market fluctuations.