Posted on 05/22/2022 9:17:33 PM PDT by SeekAndFind
There are few things scarier than a bear market, but steep and sustained drawdowns in stocks are an absolute fact of investing life. Markets go through cycles; always have, always will.
It's also true that despite being inevitable and unpleasant, bear markets are not entirely all bad. An irony of bear markets is that they're one of the exceedingly rare times when long-term retail investors can actually have an advantage over the pros.
Traders and tacticians are under constant pressure to do something, even as a receding tide lowers all boats. Contrast that with retail investors, who are luxuriously free from clients yelling at them all day. Normies can just sit back and dollar-cost average into stocks at increasingly cheaper prices.
Most importantly, a patient long-term investor who is diversified in accordance with his or her age, stage in life and risk tolerance can not only wait out a bear market, but profit from it. Remember: The market can be miserable at times, but its long-term trend is always to the up and right.
A familiarity with the basics of bear markets should help investors better cope with the next one. To that end, we've compiled the following eight facts you must know about bear markets.
Unless it’s factored in that every facet of civilization has gone insane and is on the verge of collapse.
“There are few things scarier than a bear market,”
What a charmed life one must lead if a 20% dip in the stock market is among the scariest things you can imagine.
Yeah, this article would be fine a couple years ago.
Now it makes them look like the band on the Titanic.
A bear market is fine if debt is only 25% of GDP instead of over 100%. A bear market is fine if the supply chain is intact and there is a reliable energy supply. A bear market is fine if inflation is under 2% instead of over 10%. (Need I go on?)
If it couldnae go down lads, it couldnae go up either.
Tell that to the old Roman empire.
We are not at the bottom of this one yet. When the bottom finally comes it will be flat and not a V as so many have become accustomed to. We have at least three years of bottom and nearly that many to climb out back to where we were.
The fundamentals have changed. Trade has been disrupted and the sabre rattlers are out. The climate change weenies are making disruptive and terribly costly decisions and mistakes. None of them are financially sound.
I agree... this is more akin to the long-term rising increases in energy that happened in the 1970's. Inflation is here to stay. And, that is BAD for business, and stocks.
We have conversed on similar with predictions before. I can’t remember if we were right or not. I hope we are wrong in the right direction this time.
This is a created energy price inflation and “shortage” but the effect is nearly the same. The production pipeline and replacement of suppy has been fractured intentionally for the most part.
The fool-hardy belief that we can run the world on EV and such is of course being fostered and pushed at the expense of the nation. Our competition are laughing at us all the way to a higher plane of dominance.
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