What do you do when global stock index are bearish?

[I_K]

Salam Alaykum,

What do you do when global stock index are bearish ?

What is your strategy? Since short selling is prohibited.

WaSalam

[Farhan]

Assalaamu Alykum Brother! Welcome to our community.

I’d advise you to take a look at this discussion here where we’re talking about what people are doing while the markets are like this.

What are you doing when the market dips?

Cash is the only hedge, other than very specific investing strategies that work in bear markets where you need specific expertise and experience. Normally one could hold bonds and hope they would offset a stocks downturn, but unfortunately the economic regime is different now and that hedge may not work. You’re probably thinking “but what about inflation”, my money will be devalued. Yes that’s right, but if stocks are doing down then at least cash doesn’t go down. I’ve been 35%+ cash for sev…