Bankless 🚨EMERGENCY BEAR MARKET EPISODE: What to do if you're scared
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Jun 14, 2022 The hosts dive into the emotional rollercoaster of a bear market, reflecting on the angst of first-time investors versus seasoned veterans. They discuss the causes behind price drops and offer insights on resilient strategies for navigating the downturn. The conversation highlights the influence of macroeconomic factors like rising interest rates. With community support and personal conviction as keystones, they encourage calm, long-term thinking and the potential for future recovery amidst the chaos.
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Emotional Stages of a Bear Market
- First-time bear market experiencers should expect an emotional rollercoaster, including denial, anger, bargaining, depression, and acceptance.
- Getting to the acceptance phase allows for rational thinking and learning from the experience.
Interest Rates as a Differentiator
- This bear market differs from the last due to rising interest rates, a factor not present in 2018.
- This raises concerns about recovery time, as risk-on assets like crypto typically struggle in high-interest environments.
Patience with Newcomers
- Veterans should be patient with first-time bear market experiencers, remembering their own initial emotional responses.
- Even experienced investors are surprised by this drawdown's speed.