“What we do know about crises [is] that they occur with great frequency. What we don’t know is when they will happen, what will be the cause, how long the bear market will last and how deep it will be?” ---- investment writer Larry Swedroe.
We know crises will happen but we don’t know when. In order to account for that, we have to invest for the long-term knowing a crash is bound to happen someday.
In other words, your investment plan must incorporate the virtual certainty that you are going to have live through many crises, perhaps about one every other year or so, and live through them with equanimity, without panicking and selling.”