How A Financial Fire Drill Can Save You
In this program, I walk through the basics of a financial fire drill. The object of this exercise is to prepare you for bad financial markets before they happen. By doing this, you can protect yourself from making long-term investment mistakes based on emotion and short-term swings in financial markets.
Segment one is a journey down memory lane exploring the depth and length of the five bear markets that have occurred since 1970. By looking back into history we can begin to understand how financial markets behave during difficult times.
Segment two of the program continues our review of modern day bear markets and then near the end we make the transition to the emotional side of maintaining your investment discipline.
Segment three delves into the pressures and the anxiety one feels during these market downturns. Often there is pressure to do something as your emotions begin to chip away at your resolve. Finally, not helping matters at all is a constant bombardment of bad news mixed with a steady stream of folks selling you the story of doom and gloom. Also at the end of the segment you will find some bonus information about fixed income investing and how it fits into your portfolio.
Segment four is a short summary of what was covered along with a peek into our next show. You may be surprised about who is entering the financial self help industry!
It was the last day of the long holiday weekend with California enjoying a series of storms to open the holiday season. That is something to be very thankful for. I hope you enjoy the program.