STREET DOGS: Bear markets
The thing to keep in mind about bear markets is that they are good news
The thing to keep in mind about bear markets is that they are good news. We should be yearning for those situations where companies become cheaper than they should be. When people were jumping off bridges in 1974 because the market was terrible Warren Buffett was deploying hundreds of millions of dollars into opportunities that he considered to be nearly risk-free. You know why Warren Buffett is celebrated as one of the greatest investors in history? Well, in no small part, it's because of what he was doing in 1974 - increasing his exposure to stocks without really increasing his level of risk. Call that the year that made Warren Buffett "WARREN BUFFETT." – Bill Mann. If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effe...
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