Learning from past bear markets can take teeth out of current downturn

Learning from past bear markets can take teeth out of current downturn

The following article was written by Leith Wheeler VP & Portfolio Manager Leanne Scott and first published in CanadianFamilyOffices.com. It has been reprinted here with permission. You can read the original article and other thought leadership focused on family offices here.

By facing down the bear, you can find clarity and solace, and come out the other side stronger

Author: Leanne Scott, CFA

As a Canadian, you probably know what to do if you encounter a bear in the woods: keep your cool.

It turns out this advice can serve you equally well when navigating a bear market. But in the throes of market declines, even the most seasoned investors can fall victim to the natural responses of fear and panic. In both scenarios, these knee-jerk reactions are unlikely to end well.

Despite the short-term uncertainty that inevitably accompanies a bear market, it can be helpful to remind yourself of long-term data and market trends. Economies and the markets move in cycles, and while catalysts change and timelines are never certain, reviewing patterns from the past can help provide context and perhaps some needed peace of mind about the future.

Let’s look at the definition of a bear market, how long they typically last and, most importantly, what an investor can do to come out the other side stronger...