The Bear

Has it come out of hibernation or is the beast just testing you? News flash! You won’t know the answer until the damage has been done! The so-called experts and talking heads on TV, in the newsprint, in blogs, and in person if you use a broker or advisor don’t have a clue, but will sound like they do because it’s what they do.

However, you, as the investor, the person with money at risk, must be smart about what takes place if you are going to protect your money.  Ignore the following at your peril:

2008-549--bare-bear-market1. You care more about your investments than anyone else. Follow bad advice and YOU are the one who suffers losses, not the person giving the advice. Consider those who write blogs, columns, and the like for a living; if their information is lousy, but you follow it, who loses?

2.  Why do most tell you to stay invested, ride it out, don’t panic, etc.?? (A) it’s not their money at risk, (B) the consensus is that if you sell, the money might be in play, (C) it’s human nature to “hope” things will be OK so that is the sentiment projected.

3.  The advice given has a 50-50 chance of being right, regardless of all the historical precedents cited. Taking the positive side, we’ll assume the markets rebound. Can you be certain that your portfolio will be in the traffic as the rebound takes place? Absolutely not and neither will the talking head genius know anything other than he’s paid to put out the spin! Who stands to lose?

4.  While this is a minor point, it merits mentioning.  After a market event, people attempt to make a story about it by assigning a “reason” for this or that! It’s Middle East turmoil (like that’s something new), it’s Ebola, or Fed policy, or the one you can always count on– climate change. All said and done it does NOT matter and trying to do the cause and effect nonsense changes nothing. All that matters: did you exercise prudence and protect your money??

If you subscribe to BuySelliQ, follow the signals, and shut out all the noise, you will sleep well at night!

Join the conversation