Bear Market Takeaways
1. Don’t fight the market.
During the last market downturn, I tried to stick to my dollar-cost averaging plan, but I entered too aggressively. By the time I finished my dry powder, the market continued to head a leg lower.
This time around, I learned to accumulate slowly, recognizing that the market can remain irrational longer than I can stay solvent. Even though there are mini-rallies, it still feels like there is no end in sight.
Takeaway:
Come up with an entry strategy and stick to it. Be patient. Plenty of opportunities await.
2. Beware of online echo chambers.
Twitter, Discord, Chat Apps. Online communities can be an echo chamber, amplifying fear, uncertainty, and doubt (FUD). While it’s important to stay informed, basing your reality solely on online sources can be detrimental to your mental health and decision-making.
Instead, get off your screens, meet, and speak with people. You will realise that things aren’t as gloomy as it seems.
Takeaway:
Go touch grass, especially if you’re emotionally affected by the bear. The echo chamber can be equally loud during the bull market, so beware…
