Now let’s explore what a BIG Stock Market Bear attack feels like. Take the total portfolio value and multiply it by 0.50. Be careful, this may cause an investor to experience a severe stomach churn. That is how a big Bear attack feels, and this feeling can last a few years.
This gut wrenching feeling is NORMAL, and what an investor SHOULD EXPECT. But investors need to know that Bears get tired. After a few months or a few years, the Bear usually withdraws, and an investor’s portfolio will fully recover and go on to reach new highs.
An investor’s first Bear attack is always the most traumatic. The attacks that follow are a little easier to deal with.
One final comment on visualization. Let’s say for just one moment that an investor did sell some of their ETF portfolio during a Bear attack. Would they honestly KNOW when they should start buying again? The news headlines are always the absolute worst at the bottom of Bear market. NO ONE HOLDS UP A SIGN TO SAY IT IS SAFE TO START INVESTING AGAIN. Most investors who sell on the way down also miss most of the recovery, because they are never quite sure when they should start to invest again.