How to invest in a bear market? With Rick Ferri, host of the Bogleheads on Investing Podcast [004]

The FIRE Belgium Show

How do you invest during bear markets?

This is an extremely important question for any index investor, and any investor in general of course.

And this is a very relevant question today because the stock market is down 20% in the US and about 10% globally today compared to the beginning of the year.

Following COVID and now with the war in Ukraine, the world economy has slowed down. Inflation is breaking records in many countries and there are talks of an upcoming recession in most news media.

While falling stock market prices is a great opportunity for long term investors like us, it’s still hard to handle the uncertainty. It’s hard to invest when the overall expectation seems to be that it is going to continue to go down. It is especially hard for beginner investors, like the students who took my course in the past few months and only started investing recently.

To help them manage their emotions and overcome these uncertainties, I invited one of the very best people on earth to talk to us about how to invest in bear markets: Rick Ferri.

Rick Ferri is the president of The John C. Bogle Center for Financial Literacy and host of the “Bogleheads on Investing” podcast.

He has been a financial advisor for 35 years and a pioneer of low cost investing via index mutual funds and ETFs, and low-fee investment advice and portfolio management.

He is the author of 7 investment books (including one of my favorites “All About Asset Allocation”) and hundreds of articles. Published in Forbes, the Wall Street Journal and professional journals.

He has helped thousands of index investors navigate uncertain times like the one we’re going through now.

So I was extremely happy when he accepted to join our event, despite it being during his holidays. Rick, if you’re listening to this I would like to thank you once more on behalf of the entire community.

The conversation was really insightful and it had an incredible impact on the audience.

Most of the fears and uncertainty attendees had before the event were dissipated by the no-nonsense and very clear approach of Rick.

All of us left the event with a reinforced mindset that will help us get through these uncertain times successfully.

The conversation was so good that I decided to also release it on the podcast so that the entire community can benefit from it.

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