The party is in full swing. People are swinging from the chandeliers and singing "Stairway to Heaven".
It is a great time to take a break and go home. Heck, it has been one hell of a party, but I don't need any more liquor.
This article believes there will be a full-on bear market. While I don't know about that, I do think there is going to be a strong downdraft and I would like to be prepared. For that reason, I want to be mentally prepared so I don't engage in stupid portfolio activities.
Friday, I did my what-if analysis on my portfolio to assess my downside risks. "How low can you go?" “Do I own quality companies with staying power?” “Am I being realistic to myself or am I fooling myself?” Quantifying these risks helps me to prepare for what I see as the storm to come. You can call it mental preparation. Without this analysis, I would cringe each day that the market drops. It would be like Chinese water torture (pun intended!). I want to know what the bottom line could be and I fully understand that I may be off on my calculations. Hopefully, actual results will be on the positive side of things.
The feeling I am having is probably similar to how people feel in the last few seconds before they take a bungee jump. To that I wonder.....will I survive the fall? Will the bungee cord stop expanding before the rocks?!
My hands are sweating just thinking about it.
