I wanted to revisit the question Ben Carlson answered in a recent post of his. But I wanted to open the floor to readers. The question:
How are you preparing for the next bear market?
We all know it’s coming eventually. And no one really knows when. And while we know that bear markets only occur about 20% of the time we also know that they can be extremely devastating events as they can set us back by years in trying to achieve our financial goals. It’s times like these when you really should be preparing a plan because stability inevitably leads to instability. At a time when everyone is getting more bullish you should be thinking about how to benefit when the bear market really comes.
So, how are you prepared for this inevitable event? Are you just mentally preparing? Diversify, hold and hope? Are you more active? Are you more likely to move into “actively” managed funds given the uniqueness of this environment? Are you just putting together a “passive” portfolio assuming that the future will look something like the past? Let me know what you think….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.