Why Bear Markets Hurt So Much

[dex]

Bear Markets are not just the opposite of a bull market. They are like a tornado that clean away a community - unfortunately that community is a large part of you.

It shakes your confidence about most things
It can wipe away your plans for the future
It reduces your options
It wipes away years of earnings from hard work
It points out the fallacy of security
It humbles all the financial experts

A bear market takes out all the excesses.

We were surprised by the severity of this bear market as we will be of the next one.

These two quotes about sums it up:
"The stock market teaches us to loose."
"I am the greatest threat to my financial security."

People will get out of the market at the bottom and not invest in it again - they will loose.

I'm still surprised that I'm still rather relaxed about the loss in my investments.

I admit I will become even more conservative in my investments in the future.

I will:
1. Have 4 - 5 years of expenses in cash equivalents - this was always planned
2. Use ETFs (instead of Mutual Funds) with trailing stop losses set
3. Reduce the type of investments held
4. Watch the charts closer for a change in the trends

I will not implement 2 & 3 for several years.

So, how has this bear market affected you personally and your investment plans?