The bear is out there. While the time periods may be relatively short for these markets, they can still hurt. That's because when markets get a little volatile, investors tend to let emotions take over and make irrational decisions with their portfolios. The reality is that market dips create buying opportunities for the long-term investor. Many times, however, investors don't see that because of the media, headlines, and other influential factors. Chasing performance and having a short-term view can negatively impact overall investment portfolios.
So what can we do to try and lessen the potential effects when a bear decides to come out of hibernation? The answer is simple, be prepared.