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How Long It Could Take Your Portfolio to Recover From the Next Bear Market
What if the stock market crashed tomorrow? The secret to thriving during the mayhem.
We will experience another bear market.
It could be this week. It could be this month. It could (and probably will be) sometime in the next couple of years.
Anyone who thinks otherwise is in for a rude awakening.
Before you call me names, I’m not a pessimistic doom-spreader who tries to predict the next market crash. My sentiments are based on human psychology, behavioral investing, and the law of averages.
When it comes to investment decisions, we tend to be impulsive. Money makes our brains go haywire. It’s scientifically documented. Our endorphins explode when we think about potentially gaining large fortunes — and we get physically ill at the thought of losing every dollar we’ve saved.
This can lead to irrational trading behavior in markets, especially when things suddenly look grim.
People can reiterate “buy low, sell high” until they’re blue in the face, but it won’t stop the majority of investors from doing the exact opposite. When we’re presented with enough negative information — unemployment rates rise, integral…
