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She didn’t cry at first, but when she saw the first tiny bit of blood, she was screaming as loud as possible.
My 4-year-old daughter was racing around on her scooter that she got for Christmas.
She has been riding it for a couple of months now, so she is pretty good. We eventually took off the knee, elbow and wrist pads and let her keep up with her big brother.
Then she crashed.
Skinned up her knees. And now we are back to padding her up.
It’s not a worst-case scenario. She didn’t hit her head, she didn’t break a bone. But it is likely what many investors are going through right now — a reality check.
The latest stock market correction was just like skinning up your knees playing outside — it’s part of the game.
There are ways to limit the impacts of it, though, like hedging your positions, using a diversified strategy and taking some profits as they come. But, in the end, the risks remain.
For some investors, maneuvering a volatile market environment isn’t your thing. And the possibility of a bear market scares the heck out of some of you.
I know because I read your emails and have had conversations with many of you at our annual symposium. The biggest concern is losing money.
That’s why today, I wanted to share with you a quick, simple strategy you all can implement to sidestep a bear market. Let me explain…
A Simple Rule
You all are going to read this and think that if it’s so easy to dodge a bear market, why doesn’t everyone do it?
Well, there are enough people in the world like me who want to trade the market, buy the dips, hold solid stocks and continue to play the stock market game — it’s what I love to do, and for others, it’s a rush.
But for those of you looking for an easy way to get out before the bear market ensues, here you go:
Go to cash when the CBOE S&P 500 Volatility Index (VIX) is above 25.
