How to Survive a Bear Attack- 05.22
Michael D'Angelo- May 2022
If the title seems familiar it's because you may have seen it before! Two years later and here we are again- entering into yet another bear market.
Bear markets are tough. Each one always feels worse or different than the last but like all bear markets- this one will too be over and markets will come back and achieve new highs again. Unfortunately, the answer to when this moment may be is unknown.
What can we do in the meantime? How do we Survive a Bear Attack?! It's time for us to go back to the drawing board and review the fundamentals of investing. These four guiding principles will give us the best results and help us manage our way through these times.
Vanquish Fear and Panic
Panic drives us to become fearful and when we become fearful- we are easily induced to make bad decisions. Time and time again, emotions get the better of most investors. Investment guru Warren Buffet is famous for many of his witty lines; one of my favourites being "Markets don't lose money- people do." Breathe, take a step back and continue to focus on the bigger picture. Doing this will help us maintain the right positions to weather the storm.
Know Your Environment
Whether you've owned stocks, bonds, or simply just held cash- you are negative this year. Investing is about learning from our mistakes- not dwelling on them. When we drive, we look out our front windshield to see what's ahead of us- not in our rearview mirror. Determining how to approach the road ahead is a challenge we now face. What do we do now? It's time to take advantage...
Take Advantage of Opportunities
During times of economic volatility and uncertainty- we must stick to these guiding principles. By knowing our environment, assets should now be allocated properly to take advantage of what lies ahead. Professional help is more crucial than ever to help guide us through times like these.
Don't be Afraid of Noise
We can't get too caught up in the media noise. We must remember, it's their job to sell headlines! Most things in the media tend to be a little overexaggerated. There is always "something" going on. We can't let noise impact our investment decisions.
Focus on your investment goals. Give us a call. Let's discuss your personal situation, so we can determine how to approach this market in a way that best suits you.