About this episode
Trevor, Blaine, and Brett discuss the implications of a potential bear market and the importance of preparedness in investing.
This week's blogpost - https://bahnsen.co/42ccBWB In this week's Thoughts on Money, Trevor, Blaine, and Brett discuss Blaine's article, “The Next Bear Market,” which argues that a 20% market decline will happen at some point and that recent, fast recoveries (COVID, 2022, 2023 bank failures, and a short-lived 2025 ~19% drawdown) may be breeding investor complacency. They distinguish corrections (10%) from bear markets (20%), highlight how intra-year drawdowns often fade in annual returns, and emphasize the market’s interconnected participants, leverage-driven selling, and the expectation that the Fed will intervene. The group focuses on preparing through adequate liquidity and safety nets to avoid selling at the wrong time, understanding why you own assets, and emphasizing dividends and income as part of total return. They note risk surveys can misstate real behavior, advisors act as guides to help clients endure volatility, and premium returns require accepting volatility as the price of admission. 00:00 Podcast Intro 00:30 Why Bear Markets Happen 03:05 Drawdowns vs Annual Returns 05:02 Statement Pain Explained 07:19 Too Big to Fail Mindset 10:17 Complacency After Long Runs 18:40…
People in this episode
Host: Trevor Cummings
Guests: Blaine, Brett
Topics covered
- bear markets
- market decline
- investor complacency
- liquidity
- dividends
- total return
- volatility
Keywords
- bear market
- market decline
- investor complacency
- liquidity
- dividends
- total return
- volatility
- risk tolerance
- drawdowns
Mentioned in this episode
Organizations: COVID, 2022, 2023, 2025, Fed
Books & works: The Next Bear Market
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