Got the bear market blues? Knowledge can turn fear into opportunity!

The current bear market with its economic hardships was predictable. The previous bull market, a seemingly never-ending bounty, brought us unrealistic expectations. Simply put, it spoiled us. How much did you or your advisors have to know to do well in that market? How many gurus were there? How many are there now? For the experienced and the inexperienced investor, these are worrisome times. However, just as the seasons and tides ebb and flow, we are surely going to see another bull market. It is expected that the market should retrace at least 50%. Remember that in the bear markets of 1929, 1974 and 1987, a 50% retracement ensued followed by lengthy bull markets. Also recall that bull markets are of much lengthier duration than bear markets. The most important thing to remember, according to Mark Twain, is that "Courage is resistance to fear, mastery of fear, but not the absence of fear." Do not panic! Knowledge gained from this article and others in the investment arena should give you a sense of direction, confidence in your decisions and some control over your financial future. In the long run, staying in the market has always proved to be the best choice (see Table 1). Most important, now is the time to educate yourself so that you can become proactive in making investment decisions or at least evaluate your financial advisor's investment choices. Start now; it's easier than you think!