“Stock market meltdowns are like natural disasters – they’re unpredictable and unavoidable.”
– Rob Carrick
Every investor must prepare for a Bear attack. If an investor has a 40-year investment horizon, (i.e., the number of years between an investor’s current age, and the year the investor “HOPES” to die – and everyone should have this number in their head), the investor really should EXPECT to survive about 11 Stock Market Bear attacks (40 years ÷ 3.5 years = 11).
An investor’s first Bear attack is always the most traumatic. The attacks that follow are a little easier to deal with.
The first step in surviving a Stock Market Bear attack is to simply know that they are NORMAL and to be EXPECTED. I don’t know where the market is going from here; I am not saying a Bear attack is imminent, but the one thing I am extremely confident about is that there will be a Stock Market Bear attack at some point. Tomorrow? Next week? Next month? Next year? In a few years? I don’t know, but to repeat: Goldilocks is approaching the longest gap between Bear attacks in 120 years.
“October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
– Mark Twain