Sir John Templeton further writes in the forward to Roger C Gibson’s book “Asset Allocation – Balancing Financial Risk”:
It is only common sense to prepare for a bear market. experts do not know when each bear market would begin, but you can be certain that there will be many bear markets during your lifetime. Commonsense investing means that you should prepare yourself both financially and psychologically. financially you should be able to live through any bear market without having to sell at the wrong time. in fact, your financial planning should provide for additional investment funds so that you can buy when shares are unreasonably low in price. Preparing psychologically means to expect that there will be many bull markets and bear markets so that you will not sell at the wrong time or buy at the wrong time. to buy low and sell high is difficult for persons who are not psychologically prepared or who act on emotions rather than facts.
We have mentioned in the book, “If you cannot predict, prepare.” Nobody better that Sir John Templeton to advice on preparation and articulate what that preparation is.
#RidingTheRollerCoaster – 205