Be Prepared for a Bear Market
Submitted by Desmond Wealth Management, Inc. on February 13th, 2017By Ben Carlson
Every day since President Donald Trump took office seems to bring a new political shock, so you might be surprised to learn that the stock market is just shy of all-time highs.
The new president may be unpredictable, but that volatility has yet to spill over into the financial markets. But remember, regardless of the president, there’s a high probability that investors will see a bear market during a commander in chief’s time in office. Bear markets are a natural outcome of a complex system such as the stock market, which is driven by emotions that can often take things to the extremes.
It’s no fun worrying about bear markets when we are close to all-time highs, but we should prepare for a downturn before it occurs, not after it’s already underway.