Bears, Attacks & Markets

A bear swipes its paw downwards to attack it's prey.
A bear market swipes the market downwards to attack it's investors.

Can we escape the bear's paw & grip as an investor?

Yes & No

Yes..... a couple of times in a lifetime if there is that much of a knowhow coupled with intense luck (definitely not because of one's future reading of the economy or the market)

No.....most / majority times (there is no escaping this paw, unless one is not invested)

Indian equity bear market timeline...

1990 - 91
1992 - 93
1994 - 98
2000 - 01
2008 - 09
2010 - 11
2015 - 16
2018 - (mid & small cap indices)

Is there an escape route for bear attacks?

• Real Bear Attacks - 

• try to know (understand) the bear
• stay clam and do not ever run
• lie dead, if needed
• stay away from 'kill sites' / carcasses
• carry a bear pepper spray
• give the bear an escape route to pass off
• if the bear is getting aggressive become aggressive (make lot of noise and stand on the ground)

• Market Bear Attacks -

• try to understand on the 'why' of this bear market scenario
• stay calm, stay the course to your goal & definitely do not panic, run or sell off in the worst possible phase
• just don't do anything; lie dead
• stay away investing from "killing stocks (momentum ones) and the fallen angel kinds (perceptive angels)
• carry a mindmap on where your ultimate goal is. keep spraying the 'sell off now thoughts', with the mind spray
• the bear phase will leave, ultimately. just stand the ground
• if the bear fall is aggressive, get aggressive in your buying. Invest more (have liquidity to invest, though)

Bear attacks can be fatal if not wisely handled.

Real bear attacks might not cause as much harm as Market related bear attacks.

What to do?

• Know the bear
• Handle the bear
• Let the bear pass off
• The big bull will return one day
• Until then, hold tight 🙂