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Keep Calm and Diversify

Keep Calm and Diversify

June 17, 2022

On average, Bull Markets go up about 387%. They last for about 7.2 years.

Bear Markets last on average about 1.3 years. The average decline is 40%.

What happens after a Bear Market? One year later, the average return is 48%. Two years later, it is 68%.

How soon we forget that in March 2020, we went down 30% in about six weeks.

Bear Markets are part of the investment process and are normal market functions. 

The successful investor accepts this fact and doesn’t overreact. The successful investor takes advantage of the low prices of the downturn to build positions.

Warren Buffet says he buys when everyone is selling and sells when everyone is buying.

We are experiencing a Bear Market. In my career, I have been through seven. Each time I made more money after the bear than during the bull.

Markets go up 77% of the time. Just remember, at the bottom of 2008, the S&P hit 667. It is now 3,600. So don’t fear the bear. Take advantage of prices that are generational bottoms. I have made money at the top, but I have made a lot of money buying at the bottom.

Keep calm and diversify.