Wealth of Common Sense summarized some good observations on Servo Wealth Management data on 5 bear markets since 1920s.
What I find more interesting is reinforcing the point that, you can pull money out 100% from a bear, but that doesn’t kill investors return since most people won’t know where it ends. The issue is that most don’t get back in FAST ENOUGH. And they missed out on a large part of the recovery.
The general idea is that these events will come, and psychologically you can talk until the cow comes home how to prepare for it, and another to see your money decimated. Or how you are so strong in a bull market, that your skillset translates to a bear.
Managing the psychological part is important. If you are not ready to loss psychological capital, don’t have a 100% stock allocation.
Have a fundamentally sound plan. Understand what …