How Long It Could Take Your Portfolio to Recover From the Next Bear Market

What if the stock market crashed tomorrow? The secret to thriving during the mayhem.

We will experience another bear market.

It could be this week. It could be this month. It could (and probably will be) sometime in the next couple of years.

Anyone who thinks otherwise is in for a rude awakening.

Before you call me names, I’m not a pessimistic doom-spreader who tries to predict the next market crash. My sentiments are based on human psychology, behavioral investing, and the law of averages.

When it comes to investment decisions, we tend to be impulsive. Money makes our brains go haywire. It’s scientifically documented. Our endorphins explode when we think about potentially gaining large fortunes — and we get physically ill at the thought of losing every dollar we’ve saved.

This can lead to irrational trading behavior in markets, especially when things suddenly look grim.

BUT, that’s okay. Bear markets are normal. Losses are normal. And, if you manage your investments responsibly, they won’t permanently cripple your portfolio. Quite the opposite — bear markets can be lucrative opportunities.

Here’s the thing though — if you’re in your 20s or 30s or you’re new to investing, you likely haven’t experienced a true bear market during your trading tenure. Even if you have, it’s been a while.

That begs the question: What would a more prolonged bear market look like if it commenced tomorrow?

I've outlined everything you need to not only survive but also thrive in the next bear market.