Bear Markets Are Normal

Bear Markets Are Normal

Jason Demland

March 11, 2022

That doesn’t mean we have to enjoy them. They happen frequently. I build portfolios knowing this and factor in large pullbacks. Sure, these are buying opportunities and big drops are necessary for those of us that are socking money away for financial independence. They’re also scary as heck and uncomfortable and especially nerve-racking for the people that are taking money out of their investments to live on. We’re used to the S&P 500 only going up for the past 9 years. Since 2013 the index has hit a new all-time high every year! As a result when the market drops, goes flat, and stagnates our spoiled little selves start to get squeamish.

But take heart. I know when the bear market will end.

It will end as soon as stocks stop going down.

The problem is, there are none of us who know when that is. There are plenty of advisors who will pontificate about Russia and inflation and further geopolitical strife. They’ll lead you to believe they’ve got their finger on the pulse of what’s happening and are making adjustments to take advantage of this drop or to mitigate the losses. They’ll confuse you with big financial terms and obscure economic news to give the impression they’ve got it under control and know what to do. But the truth is Warren Buffet doesn’t know. Jack Bogle’s ghost doesn’t know. Even the leading expert on investing in European emerging markets (primarily Russia) guessed wrong on the Russia invasion and lost a record amount for Blackrock’s Emerging Frontiers Fund.

If the smartest investor on the planet with regards to Russia missed this bear market then what do you think the chances of your local financial advisor set up on main street next to an auto parts store or funeral home has?

The fact is that owning stocks for the long term has historically been a great investment. Diversification is your friend. Having a plan is the most important thing. Don’t panic sell. Don’t give into the temptation that you have to do something. Your portfolio was built for times like these. Revisit your plan. Talk to your financial planner.

Subscribe to my newsletter

Join my newsletter and get biblical financial inspiration.

Demland Wealth LLC (“DW”) is a registered investment advisor offering advisory services in the State[s] of OH & IN and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training.

This communication is for informational purposes only and is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal the performance noted in this publication.

The information herein is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Demland Wealth LLC (referred to as “DW”) disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.

All opinions and estimates constitute DW’s judgement as of the date of this communication and are subject to change without notice. DW does not warrant that the information will be free from error. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall DW be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided herein, even if DW or a DW authorized representative has been advised of the possibility of such damages. Information contained herein should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.