IFB143: Why It’s Hard to Invest in a Bear Market

Announcer (00:00):

You’re tuned in to the Investing for Beginners podcast.

Finally, step by step premium investment guidance for beginners led by Andrew

Sather and Dave Ahern. To decode industry jargon, silence crippling confusion,

and help you overcome emotions by looking at the numbers, your path to

financial freedom starts now.

Andrew (00:35):

All right folks, so welcome to Investing for Beginners

podcast. This is episode 143 tonight. Andrew and I are going to talk about why

investing in a bear market is really hard in case you’ve lived under a rock

recently. The stock market has been up and down, mostly down a lot over the

last week to two. And so we thought we would kind of talk a little bit about a

bear market because we’ve officially entered a bear market territory. As of

today, I believe we were down around 23% so far for the year. So that is

officially a bear market when we get below 20%. So Andrew thought this would be

appropriate for us to discuss this. So, Andrew, I’m going to turn it over to

you and let you get us started and then we’ll just kind of go down a rabbit

hole.

Andrew (01:21):

Yeah, I love it. Watch our timing be that this bear market

recovered by the time this goes live. Yeah. I guess last time we talked about

Coronavirus, it just happened to be still relevant a week later. Podcasts see

you gotta you got a little tape delay, not a little bit longer than what they

do with live TV these days. A little bit longer than five seconds. Yeah,

exactly.

Andrew (01:55):

I think there’s a lot of emotions that go on and certainly

regardless of how experienced you are, how knowledgeable you are and how

rational you believe you are when it comes to stocks when it comes to investing

when it comes to the market how disconnected you think you are versus how

ingress you are with everything that goes in the stock market. I think it’s safe

to say that a lot of different thoughts go in your head that you don’t usually

think when stocks are excellent and you know, their stocks are slowly climbing

up, and you don’t see much volatility. Looking at a situation like this with

the bear market and you know, a lot of macro trends that are very concerning.

We have the Coronavirus which

Andrew (02:48):

As of late as of today, we had the NCAA championship

close. The NBA season’s been suspended. Like you know, you name it right on top

of that we have interest rates, baseball based. Sorry, Dave. I know, I know.

Out of everything, that was the one thing that you lamented today. I texted you

earlier, I think it was like, Oh, by the way, you know the stocks down 20%,

whatever,