The same can't be said for companies that aren't free- cash-flow positive, are unprofitable, are losing their competitive advantages to larger companies, or depend on debt or equity financing to stay afloat. But that doesn't mean that Alphabet, as a company, is in trouble.

Alphabet stock may be down 35% from its all-time high - around the same as the Nasdaq Composite. However, the investment thesis for Alphabet hasn't changed at all.

Due to its dependence on advertising revenue and a strong economy, Alphabet's business is facing short-term headwinds. Rather, ebbs and flows are simply par for the course.Ī good example of a company whose business remains largely the same is Google's parent company Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). But businesses don't experience linear growth. Granted, margins may be under pressure, earnings may be declining, and growth rates may be slowing. Outlasting volatility becomes a little easier if you remember why you bought a company in the first place.įor most quality businesses, the investment thesis probably hasn't changed between a year ago and today. But the exercise can be taken a step further in a bear market. Revisiting your holdings is a good practice, no matter the market cycle. Here are three steps worth considering now.

But you can take actionable steps to position your portfolio to outlast a prolonged bear market. You can't wave a magic wand and wish a stock to go up. But when an investment portfolio is down big, it can be challenging to stay even-keeled and focus on the long term. Investing is easy when most stocks seem only to go up. Many growth stocks are down over 80% from their highs. IXIC), seven are down over 30% from their all-time high, and two are down over 60%. Out of the 10 largest stocks by market cap in the Nasdaq Composite (NASDAQ.

However, many well-known individual stocks are down far more. All three major indices are in a bear market, which is a drawdown of at least 20% from the high. Investors have had a rough go of it in 2022. All figures quoted in US dollars unless otherwise stated. This article was originally published on.

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