Good Words For Bear Markets

It’s been a savage year of rising costs, thanks in part to pressure on fuel due to the war with Iran. This is expected to continue, but there have been signs of easing.
“The recovery has not been derailed, but it has been delayed,” say ASB economists. “Household spending, business investment and some export sectors are still feeling the effects of the oil shock, and the labour market remains soft.”
I don’t know about you, but my personal portfolio has been looking healthier this year than it has in years. The recovery will be gradual, and I think it’s important that we keep in mind the lessons of the past when faced with headwinds. So today we’ve gathered some old hands who are used to sailing in bad conditions to see what their advice is for bear markets.

“If you’re going to be in this game for the long pull, which is the way to do it, you better be able to handle a 50% decline without fussing too much about it.”

– Charlie Munger

“Missing the bottom on the way up won’t cost you anything. It’s missing the top on the way down that’s always expensive.”

– Peter Lynch

“By the time market declines (or advances) are front-page news, they usually have run their course.”

– Bill Miller

“The most important lessons in investing are learned in the tough times.”

Howard Marks

“There will be bear markets about twice every 10 years and recessions about twice every 10 or 12 years but nobody has been able to predict them reliably. So the best thing to do is to buy when shares are thoroughly depressed and that means when other people are selling.”

– John Templeton

“The true investment challenge is to perform well in difficult times.”

– Seth Klarman

“Those with enterprise haven’t the money, and those with money haven’t the enterprise, to buy stocks when they are cheap.”

– Benjamin Graham

“Bull markets and bear markets last long enough so that the average trader is likely to forget by the time the climax is approaching that any sort of movement is possible.”

– Philip Carret