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The Bear Market Toolkit

By Ken Mahoney

by Keerat

Ken Mahoney, CEO – Mahoney Asset Management, financial/market analyst, book author and TV co-host on US NO1 business TV channel Fox Business Network

 
How We Got Here
Bear markets don’t scare you out, they wear you out, and it is during these times that it is helpful to refer to a quote from one of the greatest investors of all time, Warren Buffet. Only when the tide goes out do you discover who’s been swimming naked.” We want investors to really take a moment and think about what this means.

To understand why the market has ended up in ‘bear’ territory we have to consider the fact that the stock market is forward looking and discounts future events back to the present. The events the market discounts is what is occurring in the broader economy.

Historically low interest rates and trillions of dollars in government stimulus led to loose credit and speculation, and the Fed essentially created a bubble that propelled the US market back to all-time highs and new records fo...

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