03/19/2020
BEARS ARE SCAREY!!
From my good friend Steve Miller(author unknown). I thought this to be appropriate today!!
Should you ever encounter an angry bear there seems to be some conventional wisdom as to how to survive.
1) Don’t run.
2) Play dead. [Do nothing]
Bears come in many forms. We are seeing a version of one now. How you survive a bear attack and a bear market seem to have a lot in common.
When a bear attacks, instinct tells us to turn and run. Bad idea.
It will be tough. The attack may be brief, it may last for awhile. Either way, the right answer for both the real bear and a bear market is don’t run. Hang in there.
Most bear attacks are “bluffs.” Don’t flinch.
Most bear markets are not prolonged. Don’t flinch.
Hang in there.
It is hard to do. It feels like it will never end. It will.
Those that don’t lock in their losses and then miss the comeback will survive.
Those that run… hard to say.
If the attack happens and you are in it for real… Play dead.
Not an easy ask, but it is the way out. Battered and bruised for sure, but out you will likely come.
If you find yourself in a bear market (and if you’re reading this, I suspect you have), do the same. Play dead. Do nothing.
When all the instincts you have say, “Do something!,” don’t. This is a sure fire way to get crushed.
Hang in there, play dead, do nothing, and let your portfolio work for you. You get return when you take risk.
Your portfolio is built for this. Do the right thing, and allow your portfolio to work for you. Give it the chance it needs to provide you the upside of risk.
If you try to do something to fight the bear you will likely lose. You will be tempted to get out.
You may be tempted to get more conservative and make a significant change.
If you do, you will lock in loses and significantly heighten the probability that you miss the upside when it rears it head.
Good things lie ahead. It is hard to see through the chaos and the noise.
We have gotten through bear markets before, and will again.
We will survive the bear attack together