Bear Market Perspective
Opportunities might be hiding in the chaos.
Hi, I’m Dave Denniston with Centurion Financial Strategies, and I’m here to be the antidote to uneasiness and uncertainty in a bear market.
We’re facing what could be months of market uncertainty as investors grapple with fear and worry.
In this video, I’m going to talk about some of the opportunities that might be hiding in the chaos so you can avoid the mistakes "average investors" make.
Bear markets are frequently a time of missed opportunities and avoidable mistakes. Here are three that I want you to keep in mind.
Opportunity Number One: Hunting for opportunities amid the chaos. A market downturn means that overall prices have dropped, including those of companies who may be undervalued at the current price.
Average investors often give in to panic and can hurt their prospects by buying during a bull market and selling during a bear.
Opportunity Number Two: Using the buying opportunity. With prices depressed, now is a great time to invest.
Many investors do the opposite, sitting on the sidelines out of fear. That’s usually a mistake, as it’s impossible to perfectly time the bottom. Missing the ride back up can really hurt your long-term portfolio. Don’t sit on the sidelines.
Opportunity Number Three: Learning the lesson of overconfidence. We’ve had years of a roaring bull market, making everyone look like a genius.
I think Warren Buffett said it best: Only when the tide goes out do you discover who's been swimming naked.
Now is an opportunity to remember that all bull markets come to an end, all prices eventually normalize, and no one can predict the future.
The reason you pay a professional to look after your financial life is so you can share your worries and have someone help you take action.
If you have a question about what I’ve discussed with you or you’d like to speak personally about what’s going on, please use the form below to send me a message. I’ll respond personally.