How much can you face mentally, emotionally and financially when the stock market finally crashes?
I have survived, just barely, two major stock market crashes. 2000-2003 and 2007-2009. As my investments fell almost every day, I had panic attacks and did not sleep well. I was down hundreds of thousands of dollars. I lost more money some weeks than a year of contributions to my 401k plan when I was younger. I felt sick to my stomach.
The 2007-2009 bear market and general financial crisis was even tougher because the media was reporting a possible 1930s type depression where the stock market could of dropped 80% or more. By early 2009, the market had already dropped 55% and there was no talk about get finally bottoming out. (We did not know at the time that in March 2009 it would start going back up and increase 400% percent.) Many of my friends thought it would go to near 0 and bailed out at the bottom and put the money they had left over in cash.
So…Are you prepared mentally and financially for the next bear market?