The US bear market of 2007–2009 was a 17 month bear market that lasted from October 9, 2007 to March 9, 2009. During the financial crisis the S&P 500 lost approximately 50% of its value. I thought I could handle any market volatility. I was invested 100% in equities. I was 56 years old and saw my dream of a comfortable retirement disappearing. I stayed the course but had many sleepless nights. Fortunately I could contribute for my retirement to a taxable account but was limited to what I could contribute to my Roth and my tax-deffered account. Can you handle that type of market volatility? Rather than "train yourself to be less risk averse" I would entertain how you would react to a major downturn. I have several friends that capitulated back then and stayed out of the market for years. For me investing is at least 80% behavorial and 20% skill. Most people really don't how they will react until "it" happens.
Statistics: Posted by DNeal — Sat Aug 31, 2024 3:45 pm — Replies 26 — Views 757
