Introduction: Why I Do Not Fear a Market Crash or Correction
The title of my first article in this two-part series was apparently considered provocative by many readers. So much so, that it generated quite a number of comments, many of which accused me of being complacent and/or merely deceiving myself and other readers with unjustified bravado. However, I respectfully submit that the readers making those accusations missed the “here’s why” part of the first article.
I do not fear a market crash because I’ve prepared myself emotionally, and constructed my equity portfolios with a focus on financial health and quality, in order to weather those storms when they occur. Moreover, I recognize and acknowledge that at some point in the future it is virtually a certainty that a market crash or correction will happen. On the other hand, I will further argue that it’s equally as certain that they will inevitably end. Simply stated, throughout history all bull markets have ended with a bear market, conversely, all bear markets have ended with a bull market. Moreover, historically, at least, for the vast majority of cases, bull markets run longer than bear markets.
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