"Quickly people, keep to your right! No talking, quickly! No running!"

I remember it like it was yesterday. The fire drill. We would all assemble by the large oak tree, and Sister Mary Gertrude would count noses to make sure we were all there. Then, we'd wait for Sister Agnes to tell us we could go back to class.


Bear markets are not rare. They happen every few years. Shouldn't we prepare for them by having bear market drills?

I am serious. Deciding on a rules based approach before the next bear market may very well be the best way to avoid a serious thinking error that can cause you to make the wrong decision. Chapter 9, How Thinking Errors Sabotage Your Investment Returns can give you more details.