Image Credit: Alex Nabaum
By Jason Zweig | April 3, 2020 10:00 am ET
Investors can survive a bear market the same way hikers survive an encounter with a bear: Remain calm and don’t make sudden moves.
With some modifications, the National Park Service’s advisory on how to behave if you come across a bear in the wild is a surprisingly useful guide for investors as well.
“Make yourselves look as large as possible,” advises the park service. Do that in a bear market by remembering that we all hold an implicit position in bonds, making our portfolios much bigger than we normally realize — and our exposure to stocks proportionately smaller than we usually believe.…
To read the rest of the column:
https://www.wsj.com/articles/the-bare-necessities-you-need-for-a-bear-market-11585922402
For further reading:
Books:
Benjamin Graham, The Intelligent Investor
Jason Zweig,The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
Articles and other resources:
We Can’t Prevent Market Panics. We Can Control How We React.
When the Stock Market Plunges…Will You Be Brave or Will You Cave?