# Protecting Stock Portfolios in a Bear Market
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-02
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Investing in Defensive Utility Stocks in a Bear Market
Meta Description: Discover how investing in defensive utility stocks, like water, can provide stability and protection in bear markets. Riggs Eckelberry explains the benefits
URL: https://financedigest.com/protecting-stock-portfolios-in-a-bear-markethtml

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_By_ **_Melissa Moraes,_** _Freelance writer covering start-ups, socially responsible brands, and the newest trends in the world around us_

For any investor, [the](https://www.financedigest.com/deutsche-bank-equity-bear-market-rally-will-stretch-into-2023-dollar-weaker.html "Deutsche Bank: Equity bear market rally will stretch into 2023, dollar weaker") term “bear market” can seem off-putting. While a prolonged drop in investment prices can present various feelings of uncertainty, observing current trends and capitalizing on defensive utility stocks continues to provide the stability and [protection investors need](https://www.financedigest.com/regulators-need-to-strike-the-balance-between-protection-and-strangulation.html "REGULATORS NEED TO STRIKE THE BALANCE BETWEEN PROTECTION AND STRANGULATION"), no matter how the market is doing.

As Riggs Eckelberry, Founder and CEO of OriginClear, puts it, key indicators for companies entering a bear [market are simply “when a majority of corporations miss their estimates.” This domino effect is what triggers the downward spiral when prices of an asset continuously](https://www.financedigest.com/uk-housing-market-weakness-continues-improvement-on-the-horizon-rics.html "UK housing market weakness continues, improvement on the horizon – RICS") drop and monetary value is eroded to little or nothing. “Markets respond to interest [rates](https://www.financedigest.com/no-santa-rally-for-markets-as-central-banks-dampen-peak-rate-hopes.html "No Santa rally for markets as central banks dampen peak rate hopes") and they have been very low for a long time. Now that they’re rising, the interest the U.S. government pays can be huge and the unstoppable [force of hyperinflation,” he says](https://www.financedigest.com/britain-says-it-is-committed-to-leading-a-nato-task-force-in-2024.html "Britain says it is committed to leading a NATO task force in 2024"). To prepare for such changes, keeping up with current trends in the stock [market](https://www.financedigest.com/stocks-up-bond-yields-fall-as-markets-mull-a-fed-policy-pause.html "Stocks up, bond yields fall as markets mull a Fed policy pause") is a major factor to track the big ups and downs and protect stock portfolios down the line.

At a time when [stocks slide](https://www.financedigest.com/stocks-and-gold-cheer-u-s-inflation-picture-while-dollar-slides.html "Stocks and gold cheer U.S. inflation picture, while dollar slides") deeper into a bear market, more and more investors feel their portfolios in distress. As the leader of a company working to improve America’s standard of water, Eckelberry explains the benefits of [investing in utility stocks](https://www.financedigest.com/compelling-tips-to-make-profitable-investments-in-the-stock-market.html "Compelling Tips to Make Profitable Investments in the Stock Market") like water to extinguish that fire. “The cell tower network was a huge [boom when developing](https://www.financedigest.com/concrete-placing-booms-market-notable-developments-geographical-outlook.html "Concrete Placing Booms Market: Notable Developments & Geographical Outlook") regions bypassed the whole landline infrastructure. We are seeing the same with water – the central infrastructure is completely obsolete, so [industrial](https://www.financedigest.com/is-your-erp-system-industry-4-0-compatible.html "Is your ERP system Industry 4.0 compatible?") users are investing in private water treatment systems,” he says. Not only do these kinds of assets ensure continuous value for investors, but they work to [protect their collection of market-traded securities](https://www.financedigest.com/5-ways-to-protect-your-company-from-cyber-security-threats.html "5 Ways to Protect Your Company From Cyber Security Threats") within a bear market. “This is the future of water, a trillion-dollar [global industry](https://www.financedigest.com/german-industry-calls-for-delay-to-global-minimum-tax-bdi.html "German industry calls for delay to global minimum tax – BDI") that is easily worth five times as much – if you decentralize it!”

While stock prices change every day, seeking out specific [investments is also essential to protecting a portfolio](https://www.financedigest.com/three-fundamental-tips-to-enhance-your-investment-portfolio-performance.html "Three fundamental tips to enhance your investment portfolio performance") even in a bear market. “You want to find the areas that are underserved in the new low-demand, high-inflation economy. We’re doing that in water, but there are other areas too,” he shares. Confronting the growing issues of the water industry, [investing in daily necessities is crucial for companies like OriginClear whose performance can be minimally impacted by changing trends](https://www.financedigest.com/investing-trends-and-projections-for-2023.html "Investing Trends and Projections for 2023"). Regardless of economic conditions, utility [stocks provide great investment](https://www.financedigest.com/how-to-start-investing-in-stock-market.html "How to start investing in stock market") options, making them desirable for any well-diversified portfolio.

Offering valuable guidance for companies to prosper and improve investment returns, Riggs Eckelberry shares his advice for young and older investors alike as they follow changing trends and [seek stability down the road](https://www.financedigest.com/exclusive-nissan-seeks-tech-tie-up-without-renault-as-alliance-nears-end-of-road.html "Exclusive-Nissan seeks tech tie-up without Renault as alliance nears end of road"). “Be sure to [invest in hard assets](https://www.financedigest.com/angels-and-assets-should-wealth-managers-take-an-interest-in-angel-investment.html "Angels and Assets: Should Wealth Managers Take an Interest in Angel Investment?"), not those that are in deep trouble. Follow the trend, which right now is all about a super migration from the [big old cities](https://www.financedigest.com/downsizers-in-the-big-city-why-wembley-park-is-the-place-to-be-for-those-who-want-more-for-less.html "Downsizers in the big city – why Wembley Park is the place to be for those who want more for less  "), to distant places. That is the future – follow it!”


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