I discuss my three main lessons I learned the hard way in bear markets. 1. You will never top tick the market - get over yourself. 2. Don’t forget to add to the bad kids at the bottom. 3. Going conservative at the bottom is dangerous to returns long term. We show a chart of the potential pain of owning small companies near the bottom, and how changing your strategy midway through a bear market can be dangerous. While I do rebalance and tweak the portfolios as we go through the bottoming process, it’s important to realize that the suffering is part of investing. Trying to avoid the suffering will lead to more suffering in the future as markets recover. This interview was exactly what I was telling my crew today - as we just completed a rebalancing program that took a good amount of equity exposure off the table. No matter how much experience I have gained over the last 22 years, you can never separate yourself from emotions, you just learn to live an examined life.
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