Bull Market Genius Is A Dangerous Thing

Lance Roberts33.6K FollowersFollow5ShareSavePlay(10min)Comments(2)SummaryDuring extended upward-trending markets that reward risk-takers and punish caution, everyone is a “bull market genius”.As someone who has lived through and traded through both the dot-com and financial crisis, when the next bear market drawdown arrives, the illusion of safety will be shattered.The only way to prepare for pain is to internalize it before it arrives. If you wait until your account is down 30%, it’s too late.If you feel like a bull market genius right now, be careful, as that might be the market fooling you. WANAN YOSSINGKUM/iStock via Getty Images During extended upward-trending markets that reward risk-takers and punish caution, everyone is a “bull market genius.” That dynamic flips investor psychology and, over time, creates a false sense of control. As the market continues to climb, risk appearsThis article was written byLance Roberts33.6K FollowersFollowAfter having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; I have pretty much "been there and done that" at one point or another. I am currently a partner at RIA Advisors in Houston, Texas. The majority of my time is spent analyzing, researching and writing commentary about investing, investor psychology and macro-views of the markets and the economy. My thoughts are not generally mainstream and are often contrarian in nature but I try an use a common sense approach, clear explanations and my “real world” experience in the process. I am a managing partner of RIA Pro, a weekly subscriber based-newsletter that is distributed to individual and professional investors nationwide. The newsletter covers economic, political and market topics as they relate to your money and life. I also write a daily blog which is read by thousands nationwide from individuals to professionals at www.realinvestmentadvice.com.