Time to be cautious! Oh, wait, we’re already cautious…

As the accompanying article by Mark Hulburt points out, the emotional consequences of downside losses in a bear stock market are often greater than investors predict. As a result, these investors are usually reluctant to “buy cheap’ in the midst of a chaotic downturn. An even greater motivation is that bear market losses are..well, losses! Nobody enjoys that. With stock markets currently at all time highs, it’s time to be extra careful, even though we can’t really predict when bad news might strike. We’re already allocated with a potential bear market in mind. But when a downturn DOES occur, we won’t be able to predict in what market segments losses will be greatest. More on that later. https://www.marketwatch.com/story/now-is-not-the-time-for-stock-investors-to-ignore-the-next-bear-market-2018-10-01