Staying Safe Around Bears

The S&P 500 recently breached bear territory, which is largely agreed to be a market that has dropped 20% from a recent peak. It’s common to see some retracing. The “bear-market bounce” is real.

However, even if the market recovers a bit, it will take some time, good sentiment, and real economic progress for performance to climb from bear to correction to neutral to positive.

In the meantime, outside of a short, sharp drop in 2020, we haven’t seen this volatile market since, you guessed it, 2008.

Driven by inflation, global uncertainty, supply chain issues, and rising rates – economists are predicting a recession in the months and years ahead. Some are even saying we’re in a recession now.

With a bear market, and 20%+ drops in the market, comes a wave of emotions: Stress, sadness, and anxiety. The list can go on and on.

The National Park Service has a lot of advice for safeguarding yourself when you encounter not-Smokey out in the wild. And much of it is based on psychology and managing your own fear, so that you stay in control of yourself and the situation.

We’ve borrowed from that playbook to give you tactical pointers in navigating bear markets, volatility, and turbulence.
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