Prepare for Prolonged Bear Markets

Investors, particularly those nearing retirement, should consider raising cash and reevaluating their portfolios by stepping away from dividend plays in anticipation of a prolonged bear market, which may last 10 to 20 years. Unlike past economic downturns, the upcoming bear market is expected to unfold over a longer period, potentially resulting in multiple market crashes rather than a singular significant decline. This environment could lead to dividend cuts and even company bankruptcies, representing a risk for traditional dividend investors. Initial market declines may occur as mini-crashes before larger, more impactful crashes that trigger these dividend issues. Investors should be strategic, seeking to exit dividend plays before the corrective rallies and return to them only after the market stabilizes post-crash.