Pray For A Bear Market – If You Are A Net Buyer Of Stocks

If you are more than ten years away from retirement and are earning money and investing, you should pray for a bear market.  A massive one.

Bear Markets Are When Companies (And Their Earnings) Go On Sale

Why would you want the market in a buoyant mood where every share you buy is expensive (relative to the earnings of the company)?  You want to buy assets for a good deal.  On the cheap.   And that means during a bear market.

Are you plowing money into the market, but also feeling rather brilliant because your stocks are up?  Be careful.  You may be susceptible to bubble thinking and getting swept up with the crowd.

I'm not saying you shouldn't invest when the markets are up.  In fact, for 98 percent of the population (including myself), I advocate consistent investing over time--without trying to time the market or worrying too much about valuations one way or the other.

Nonetheless, spotting bubbles and avoiding mania style behavior is an important skill as an investor.

Give it some thought.