Reading Time: 3 Minutes
What’s up guys!
How’s the week coming along?
Bit of a rollercoaster so far for your truly, work’s been pretty brutal these last couple of days.
Life.
Is.
Hard.
But it’s harder if you don’t keep going right!
Fight the good fight, it’s what we all must do.
Speaking of the good fight, a quick congratulatory word for my friend Bugzy, who was married to the girl of his dreams this week.
The one who he can finally “play the piano and stroke my baby’s hair”.

I’m just happy that he’s found the one, because if you saw him just 2 years ago… sitting by himself at the foot of the stairs in our local shopping mall… well… that’s another story for another day.
(Closes eyes in memory of such harrowing times).
But ENOUGH, because today, today we continue our talk on BEARS.
Specifically on “how to survive a bear market” (read part 1 here).
We’ve discussed “step 1 – don’t panic (and shut out the noise)“, we’ve talked about “step 2 – think (wo)man, think”.
The next step is to:
Step 3 – Survive the initial wave.
Usually bear markets, in the major asset classes are a prelude to a deterioration of economic conditions. This is because market movements are just people’s expectations on value at a certain point in the future.
A bear market represents a significant (20%) drop in overall market conditions.
Whether in the housing or stock market, a drop of this magnitude is felt by everyone.

Soon enough – it cascades into the overall economy as a whole.
In which case, for most of us – it’s all about SURVIVAL baby.
Making ourselves invaluable to our 9 to 5, or making sure our customers are well serviced in our business, or setting up a new business – whatever it is, you have to survive the downturn!
Oh man, I’ll won’t ever forget during the last brutal GFC – as a fresh-faced, fresh-eyed, fresh graduate working in financial services.
What an eye-opener that was!
I will always remember looking into a manager’s eyes during the uncertainty, his face etched with worry, with neither of us knowing whether we still had a job.
I will always remember over-hearing a grown man, sobbing his heart out because his job no longer existed, in the next meeting room.
I will always remember that conversation with my colleague who confessed to me, she didn’t know how she’ll feed her 1 year old if she loses her job.
You know, I often reflect on this time – I am incredibly lucky and unlucky to have gone through the GFC at such a formative time in my personal and investing career.

Lucky in the sense that I’ve experienced an economic down-turn the worst since the Great Depression so early on as to have time to recover and learn.
Lucky in the sense that I wasn’t newly married with a 1 year old at home.
Lucky in the sense that I didn’t have two tweenage kids with private school fees and a stay-at-home-mum.
But above all, I feel lucky in the sense that I survived through it (not unscathed, read here as to why) but stronger, better and hopefully wiser.
As for being unlucky… well… you figure it out.
Ya know, it’s so easy for them to tell us to “invest when there’s blood in the streets” or to “dollar-cost average” or to be “greedy when others are fearful and fearful when others are greedy” but yknow – try doing it when you’re going through the storm.
That’s why protection of what you have is absolutely PARAMOUNT during a bear market.
Nothing else matters.
Just survive it.
~~~
Was gonna write “Step 4” but I think “Step 3” is one of the biggest and most under-rated factors on how to survive a bear market – the fact that you have to go through it, keeping what you have. I’ll think I’ll just leave it as a stand-alone post.
So until next time, have a great week everyone!
What do you think? Did you enjoy this post? Please help me out if you enjoyed this and put your email in and click on the little “subscribe” button on the right hand side. This way, you’ll never miss my words of awesomeness! So do the right thing, be a subscriber and get it straight to your inbox fresh out of the oven!
54 Comments
Sydney
I studied economics as an undergrad and this was a great refresher for me! It’s important to know what’s going on in the market in order to gauge your assets and returns. Thanks for sharing!
The Frugal Samurai
No problem! Hope you enjoyed economics btw, I actually think it’s one of the most useful courses taught in uni and college. And totally agree to be aware of what’s going on in the market. Thanks for reading!
Kate Findley
Thank you for a fun and educational post! I was also lucky enough to be young with no kids during the last major recession. It taught me that my parents’ way of thinking — get one steady job that you’ll have for the next 30+ years and happily retire — isn’t going to cut it in my book. That’s why I’m all about multiple streams of income. I’m not rich by anyone’s standards but at least I’m not dependent on anyone or anything as my sole source of income.
The Frugal Samurai
You’re so right! Multiple streams of income is truly the way to go in today’s day and age! I’m not sure but have you heard of the FIRE (financial independence retire early) movement? Sounds like you’re well on your way! Thanks for reading.
Alexandra
I enjoyed reading Part 2 of your post. As someone who is fairly new to the share market, I appreciate the advice!
The Frugal Samurai
No problem! I hope you too a little bit away from you, but honestly it can’t prepare you for a TRUE downturn, oh man… “shudders at thought”.
Latte Lindsay
I know that feeling of despair when the markets changed. I didn’t truly understand what was happening butnI remember businesses shutting down all around me and being terrified I would be out of a job and not be able to get another one.
The Frugal Samurai
Oh yeah – scary is an understatement back then! Good that we both grew into and out of it – what doesn’t kill us makes us stronger!
Joan
I am still. Getting my head around the share market so this part 2 was nice to read through.
The Frugal Samurai
No problem, glad you enjoyed the read!
Joanna
You are right, as scary as it must be, it’s important to keep calm and try to “survive”. Taking decisions in such unstable times is very hard and I can imagine how terrible must feel to let people go.
The Frugal Samurai
I know right! Too many people talk a good game during the good times but play a bad game during the bad! Wouldn’t want to wish it on anyone, the stress and uncertainty, argh! Thanks for reading.
Alissa
Economics is such an important class. This is also a great article!
The Frugal Samurai
Thanks for reading! I hope you enjoyed it.
Dalene Ekirapa
It’s always so scary when adverse economic trends happen leading to a drop in the market. This can be very scary especially if you think of losing your current job.
The Frugal Samurai
So true, during the scary moments we just want to protect and retain what we have right! Wouldn’t wish the turmoil onto anyone.
Jessica
This aligns perfectly with my focus for the month- my finances. One of the important takeaways that I have gathered from your post is to be prepared and weather the storm! This was great information and interesting read.
The Frugal Samurai
No problem, thanks for reading and good luck with those finances – hope you smash it out of the park! Thanks for reading.
Amanda Yorton
This is an interesting read. I will definitely need to go back to part 1 so I fully understand a BEAR market!
The Frugal Samurai
Thanks for reading! Haha yeah go back, go back – soak it all up! More parts to follow shortly!
Hanh Nguyen
Haha very funny post on the coming crisis and it’s so true. Things are getting pretty rocky right now and 2019 is gonna be even rockier I think.
The Frugal Samurai
I’m glad you think so, at least someone does! Haha, yeah it looks like we are approaching a bit of a cliff doesn’t it? Would be very interesting to see how 2019 pans out.
Sarah Bailey
This is an interesting post, I have to admit I found the last recession quite hard, I’ll have to take a look back on your first part as well.
The Frugal Samurai
Thank you Sarah, hope you survived the last recession and well and truly out of whatever hardships now! Thanks for reading.
Runcanvas
We were just chatting about this on our run the other day. It’s def hard to not freak out a bit. Good info
The Frugal Samurai
No need to stress or freak out! Just be prepared and we’ll be fine… I hope. Btw kudos for running, meself personally want to get back into it! Thanks for reading.
Bugzy
Hahaha firstly thanks for the mention Mr Samurai, it’s an honour to join an esteemed league of married gentleman such as urself, PNG, and Lord Cao.
*clinks the sword of seven stars against ur katana as a mark of respect (cross swords 🤭🤭)
Secondly as I was reading ur well informed post, i realised the journey to finding the one is quite similar to that of ur journey to financial success… took 10 years of persistent effort (should blog about it).
And lastly, that night at the local mall… is “forever scorched in the memory bank”
Amen
The Frugal Samurai
Pleasure sir, welcome to the one ring (to rule them all) club, I’m glad that it took such a while for you to find the right one. All the best things in life take time – partners, finances, fantasy sports titles, everything.
“Sigh” that night… to quote a scholar (MrsFrugalSamurai) “Hey, is that guy OK?” (points to a forlorn figure, seated and slumped by the stairs)… say no MORE.
Brittany
I really need to work on getting familiar with all of this. I don’t know too much about economics and bear markets. Thanks for the info.
The Frugal Samurai
No worries! Thanks for reading, I hope that it was a brief intro to what I feel is a pretty serious topic!
Dani
First, I love your writing style. So great! Second, this is an area that I need to learn A LOT about now that I’m in the adult-world. I’m embarrassed to say how ignorant I am about this kind of stuff. Great article!!
The Frugal Samurai
Oh thank you thank you, too kind – I’m glad someone thinks so! As for the adult-world, it can be a bit overwhelming can’t it! But don’t worry – you’ve got plenty of time to learn and experience it all! Thanks for reading.
Sandra
This is actually a new term for me. I’ve never invested sad to say, but this gives me an idea of how to react when a bear market happens in the future. Haha. Hoping that I get to really allocate funds for investments asap!
The Frugal Samurai
That’s OK, if you have never interested – the first step is always to learn! No need to rush things, just come back to thefrugalsamurai more often hahaha! Thanks for reading.
Ola @ WanderWithOla
Wow what an interesting read. This post really reminds me on how sad and terrible it was during the GFC. A lot of people lost their jobs without notice and were totally clueless on what to do, especially those who are the breadwinner of the family. Yup, whatever it is, you have to be (prepared to) survive the downturn indeed.
The Frugal Samurai
Thanks for reading! Yeah it is very, very sad and brutal really – I mean you could be in mid-life with young family relying on you for basic food and shelter, terrible how it happened and the aftermath. Here’s to hoping we don’t see another one in our lifetimes!
Rosey
Congratulations to your friend on his marriage. The tips you gave for surviving a bear market are thoroughly thought out and it was considerate of you to share them.
The Frugal Samurai
Thanks very much! Yes many congratulations indeed. Thanks for reading!
Terri Beavers
Staying calm is not one of my best assets. I need to learn patience and I especially need to learn to stay calm. I am going to use your tips to learn what to do in a bear market.
The Frugal Samurai
It ain’t one of my best assets either but we all have to do it unfortunately! Thanks for reading, hope you enjoyed it!
Kristyn Nealey
I have started to find interest in the share market. Reading this gives great advice and makes me want to keep learning.
The Frugal Samurai
No problem, thanks for reading! Yes it does help to learn and educate ourselves right! Thanks for reading.
Sara Welch
I wish there was more focus placed on this type of subject in school. It is so complicated and confusing, but a very important thing to understand.
The Frugal Samurai
You are 100% correct here, I mean school does nowhere near prepare us for the real world, especially one that affects everyone such as finance. Thanks for reading!
David Elliott
Riding the initial wave with anything in an investment is important. Not just reacting to everything going on all the time but looking long term always helps, especially in a bear market. But I can see why it would make investors jittery.
The Frugal Samurai
Yes would have to agree with you, the foresight to look ahead is so darn important but often missed! Staying the course and investing for the long-term, thanks for reading!
What Corinne Did
I have studied economics back at uni but it was a long time ago so this is acting as a very good reminding and also teaching me a few new things!
The Frugal Samurai
Yeah same here, but was sooooo long ago! Thanks for reading, glad you enjoyed it!
Bindu Thomas
This is very fun and educational post. I will definitely need to go back to part 1 so I fully understand a BEAR market!
The Frugal Samurai
No problem, thanks for reading and by all means – head back over there!
Anosa Malanga
I didn’t actually appreciate economic before but when I am already working and I guess during at some point I am maturing already, I get to appreciate it. Haha!
The Frugal Samurai
I know right, growing up sucks but we all gotta get on with it right? Hope we can all learn a thing or two! Economics doesn’t have to be hard! Thanks for reading.
All She Things
I have never been too interested in studying economics but the way you’ve explained the whole concept of a bear market, it made economics sound so interesting!
The Frugal Samurai
Thanks for saying so! Hope you enjoyed it, yeah it can be SUCH a dull topic right! Bear markets don’t have to be scary 🙂