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

03.19.2020 - By The Investing for Beginners Podcast - Your Path to Financial Freedom

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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,

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