A Bear Market Checklist To Thriving In A Downturn

Here is the article I like to read.

Now that we have a good idea of where we are in the economic cycle, it’s always good to prepare for something before it happens. This is called “pre-mortem” versus “post-mortem.” You want to have a pre-mortem checklist for things such as:

• What to do if you get into a car accident
• What to do if your baby or toddler is choking
• What to do if an intruder is breaking into your house
• What to do if you’re having a heart attack
• What to do if your spouse passes away suddenly

When disaster strikes, we often CANNOT think clearly. As a result, we tend to make suboptimal choices. With a pre-mortem checklist, we don’t have to think. Instead, we can follow instructions that were created when we were thinking clearly.

Thankfully, a downturn moves at a glacial pace in comparison to these above disasters. Therefore, we have plenty of time to take action. Unfortunately, because a downturn can take months to transpire, there’s often less of a sense of urgency.

Bear Markets Don’t Last Forever

Although going through a bear market is painful, the stock market has made money 95 percent of the time over rolling 10-year periods since 1926. Over a rolling 20-year period, it’s made money 100 percent of the time.

Unfortunately, we will all eventually run out of time. Running out of time is why I’ve put together a bull market and bear market checklist. Ideally, I want us to live our best lives possible all of the time.

Having to spend time to recoup losses is a terrible waste of time. As you get older and wealthier, you no longer want to worry about money anymore. All you want to do is spend time on what really matters.