Do you know why bear markets happen?
Or what you should do during them?
It’s easy to lose focus in the chaos of a bear market. In fact, behavioral economists say we’re primed to look for the negatives after a market downturn.
When that happens, we tend to seek out more negative information. When we find it, we start to feel threatened. It’s human nature.1
You know what can help?
Corrections are anxiety-provoking.
They make us wonder if we got it wrong. If we’re going to be ok.
If this time is “different.”
After all, the S&P 500 plunged “at unprecedented speed,” and this was the “worst point drop in history.”1
After weeks of headlines about the coronavirus outbreak, markets have been caught in a volatile pattern of surges and retreats. Here’s what you should know:
In the wake of recent market volatility predictions, I prepared this 4-minute read and flowchart that I think you’ll find incredibly valuable.
Resist the panic trap that can come with recessions.
Economic expansions never last forever. Eventually, they’ll be followed by a recession. It’s inevitable. And it’s a natural part of the economic cycle. While we never know when the next recession will hit—or how long it’ll last—history shows that, on average, recessions don’t typically last as long as booms.
