the bear market ALMANAC
With worry over a potential bear market rising, we wanted to provide the data to prove which techniques can work. As a doctor, I always took the time to explain the reasoning for different medications and the mechanisms that made them work. I’ve found that following advice blindly leads to stress, confusion, and poor coherence to treatment plans. By understanding what bear markets are, what can protect us, and how exactly that works, we hope you’ll feel better prepared and more confident when the next shakeup comes.
Fidelity Total Bond Fund (FTBFX).
Defensive sectors can preserve your wealth: Common sense tells you that utilities and health care stocks should provide protection. The data show they do. For conservative- sector stocks, look to companies like Berkshire Hathaway (BRK-B), Rollins (ROL), and the Invesco High Yield Equity Dividend Achievers Fund (PEY).
Gold can help: Don’t go overboard – since gold’s returns during healthy markets can disappoint – but having some gold in your portfolio can deliver some good news when everything else looks bad. HOWTO SURVIVE A (REAL) BEAR ATTACK Whether or not any of the following lessons in surviving an actual bear attack apply to surviving a metaphorical bear attack in the financial markets... we leave that for you to decide. The No. 1 reason for a bear attack is (surprise) getting too close to a bear... Wild animals aren’t called wild because they want to get petted or have a selfie taken with you. Keep your distance. Bears are also attracted to food... Make sure that anything they consider to be food (which is practically everything) is closed up tight in sniff-proof containers. But if worst comes to worst, here are some tips to help you survive a tooth-and-claw bear attack... 1. If a bear charges at you and you have bear spray, USE IT! According to U.S. Geological Survey experts, bear spray is effective... um... most of the time. A gun works, too... But you better know how to use it. You’re only going to get one shot. And it better be a big gun. Your Boy Scout sharpshooting merit badge .22 caliber pea-shooter is just going to annoy a grizzly. 2. If you don’t have bear spray or a .45 semi-automatic, make yourself look big... Hold the sides of
your coat out wide, wave your arms, and make lots of noise. Bears are frightened by large, fierce animals the same way you’re frightened by bears. 3. Don’t climb a tree... Bears are better at tree-climbing than you are. 4. If a black bear attacks, fight back. (Good luck!) But if it’s a grizzly, play dead. Lay on your stomach to protect your organs, or curl into a fetal position. Apparently, mauling and biting dead things isn’t as much fun for grizzlies as mauling and biting things that are screaming and yelling and thrashing around.
More bear reading: StuffedWith Sockeye Salmon, ‘Holly’ Wins ‘Fat Bear Week’ Heavyweight Title
When a Fatal Grizzly Mauling Goes Viral
A Hike Into Horror and an Act of Courage
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October 2019
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