Wednesday 5 March 2008

Who's Counting?


We are all counting - is this a bear market or not? To refresh your memory a bear market occurs when the share markets go down and stay down. Currently markets are down about 15-17% - depending on who's counting. The jury is still out over whether the drop will be sustained for much longer. In practice bear markets and lull markets are difficult to predict and call; often they are identifiable only with hindsight.

So, should you be worried? A bear market is sure a test of nerves, fear and pessimism rule. (Read Money, Money, Money, Ain't It Funny - How to Wire your Brain for Wealth to help overcome this if you are worried)


My suggestions are firstly; do not panic. If you stay fully invested you won't miss the run up and recovery, if you are the slough despond sell the worst performers and hold the funds to reinvest later - but be warned you will most likely miss the recovery.

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