In this ColoradoBiz Magazine article, our founder, Kevin McNab explores what we learned from the most recent market correction and if you are prepared for the next bear market which may be right around the corner. Track Ninja provides globally diversified portfolios in low cost funds invested according to our client’s risk level and financial goals. What is your plan for the next bear market?
Leading up to this year’s Super Bowl, the stock market was on edge with volatility not seen in many months. As tired Americans shuffled into work Monday, Feb. 5, stocks created additional pain beyond the Super Bowl hangover with a 1,175 point drop in the DOW – the worst single day point decline in history. Three days later, on Feb. 8, the stock market crashed with another 1,033 point loss in the DOW, sending the market into correction territory. With sudden amnesia, the media acted as if stock market corrections were a rare event and the 24-hour cable news cycle was off and running. The reaction of novice investors varied dramatically with some acting like deer in headlights, others remained over confident, while many scrambled in panic to move money into safety. It was clear many investors did not have a plan while they forgot market declines are normal in the midst of a bull market. Why did this happen? And what should investors do to prepare for the next correction or bear market?