The question smart investors are asking is straightforward: What should one do when a bear market arrives? In fact, the CAPE ratio now sits within striking distance of an all-time high, spanning 155 years of data. History shows that when the CAPE ratio peaks, the market rarely follows with smooth sailing. How can investors prepare for a bear market? Preparing for a potential drawdown, recession, or outright bear market does not require a complete portfolio overhaul or frequent trading.